Prosper K. is a member of the Rwemengo Tumanyane loan group (pictured here) and a 53-year-old married father with seven boisterous children. To meet his large family's expenses, he has operated a grocery store in the Rwemengo Trading Centre for the last ten years. Mostly, he sells bananas and coffee. His business has done well but has also faced many challenges, including the absence of a regular revenue source. However, his business has remained successful because of Prosper's hard work and attention to customer relations. He makes 120,000 Ugandan shillings a month, and has applied for a loan to restock and expand his store so that he can increase his 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.