K. Mary, 59 years old, has been operating a general merchandise retail business in Kakoma-Bushenyi for the past 4 years. She says her set objective in starting this business was to establish a dependable source of income for herself and her family of five, her husband included. In her shop, she sells a variety of commodities popular with many village folk. Mary also has an up-and-coming banana sales business which she anticipates will grow provided she buys more manure for her banana gardens. This business generates Mary 100,000 UGX weekly. With this loan, she is going to purchase more retail commodities such as rice, beans, maize flour, bread, sugar, etc. to resell at her shop.
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.