42 year old John T. has been in the dairy business for the last 13 years in Burunga-Ibanda. It is a business he says he inherited from his parents who he says passed onto him the spirit of diligence and dynamism. These have been virtues he has relied on to make his business a success. John who is happily married with 3 kids says savings from his teaching job have come in handy in helping him solidify and consolidate his business earnings. John also sells cows as a means of supplementing on his profits. Monthly his business profits are to the tune of shillings 450,000 and he says with this loan, he is going to purchase more cows. Alice, the lady standing next to John, mistakenly put up her arm too when the photo was being taken.
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.