Do good planning and avoid profit loss is the philosophy that has kept 35 year-old W. John’s crafts business on a steady course for the last 20 years. Married, and the father of seven, he makes 60,000 shillings per week. John had to go through an apprentice training mill to learn the trade of making local crafts. Prior to that he was more partial to farming. He also runs a retail business and with the assistance of this loan, he wants to buy more raw materials like sisal and bamboo to make the products he sells. He foresees a scenario where he will be able to make more profit with more crafts made for sale. Since he operates by the side of the road, people can look and admire what he has made.
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.