K. Mariat, who leads this loan group, is a hard-working and optimistic 52-year-old mother with eight children who range in age from 11 to 25. She operates a business in the Kyangara Trading Centre, where she buys and sells coffee beans. She has been in this line of work for 20 years, and in that time has managed to significantly improve her family's living standards and pay to educate her children. By all appearances, her business is in good shape, and produces revenues of almost 500,000 Ugandan shillings a month. The prospects for growth also seem strong, which is why she is applying for a loan to buy more items to sell in her shop. By increasing her income, this loan will allow her to continue paying for her children's education, expand her business, and develop a small plot of land she owns into a profitable farm.
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.