Kishegyere Kwetungura Group, Kihihi
Francis is involved in growing tea and selling tea leaves to Kayonza tea factory in Kihihi. He says that out of his sales plus the sale of coffee, he is able to make 240,000 UGX as monthly profits. At times when his output is small, he buys tea leaves from other farmers and supplies them to the factory. This is why he now needs a loan to buy more tea leaves and also expand his tea farm. Francis has been in this business for ten years and having a ready market has benefited him a lot.
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.
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Success!! The loan was 100% repaid