The trend now in Uganda is to do business and get wealthy with time. It is a sharp contrast with the emphasis that was laid on education by most people in the 1970s and 1980s. The situation today favors business undertakings rather than white collar jobs, which are hard to come by. In keeping with this stream of thought, 35-year-old N. Aisha made a decision to start her own tailoring business five years ago. With 100,000 and 400,000 shillings as weekly and monthly profits respectively, she is one happy woman. All of her five children are doing well at school and she is proud of the fact that she is paying their fees. With this loan, Namirima wants to buy more cloth to make more clothes to sell on a large scale. She hopes this will enable her to earn more income.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.