Ruth N. is a 38-year-old happily married mother of four who has been in charge of a flourishing grocery store in Mbalwa-Mukono for the past ten years. From the statement, one may be deluded to think she is dead, but the statement is in perspective. Ruth, a courteous, welcoming and lively woman, says that close friends motivated her to start this business where she mostly has been selling mineral water and foodstuffs of all kinds. Her first business was a canteen in a neighboring school. This grocery business generates about $86 a week for her. Ruth is a member of Mbalwa Development group and she says that with this loan she is going to restock her grocery store with more foodstuffs to resell. She says that this will, at length, help her a great deal in terms of improved sales profits. She says this will be the first step towards expanding her grocery.
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.