K. Micheal is the leader of the Muhororo Tukore group in Kihihi. He is 30 years old and married with 4 children and all of them are in school. Micheal has a tea plantation from which he sells tea leaves to the tea factory and he is able to make 200,000 UGX as weekly profits. He also has another source of income and this is the banana plantation from which he makes 40,000 UGX as profits weekly. Micheal needs a loan to be able to buy fertilizer for his tea plantation of 8 years. He says that he is lucky that he has a ready market for his tea leaves since he is near the tea factory. He is a hard working and cooperative man and he needs to expand his business and educate all his children to the highest level.
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.