N. Harriet was inspired by a close acquaintance to start up a retail shop in Katosi-Mukono a decade ago. The friend had observed that a retail shop stocked with a variety of general merchandise in the Katosi trading center would be a lucrative venture. Before that, 45-year-old N. Harriet, a happy-go-lucky single mother of 3, was banking on profits from a banana sales business. She now sells essential commodities such as sugar, maize flour and rice and the business generates 200,000 UGX monthly. Harriet plans to use this loan to purchase more retail commodities to resell. Harriet belongs to the Sikyomu group-Mukono.
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.