N. Sarah saw the counter-productive effects of poor planning, ineptitude and the hasty rush for financial returns on her close friend’s ill-fated businesses that she says taught her a lesson. She made deductions that the above factors contributed to the unraveling of her friend’s businesses. It is for that reason that 6 years ago, she decided to begin her cosmetics selling business on a totally different slate. Sarah has come to terms with the fact that hard work, focus, and constant planning are invaluable for the success of any business. Sarah, who belongs to Kiganda Development group-Mukono, says credit goes to her mother for the support in starting this business. Previously she was operating a charcoal and water selling business. This mother of 3, who is happily married, says her weekly profits total up to 100,000 shillings. With this loan she says she is going to purchase more cosmetics to resell.
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.