Edith is a hardworking 45-year-old married mother of seven children aged 9-26 years old. They live in Karuguuza Uganda. She is the leader of Kweterana Kakumiro group which is a group of hardworking mothers with a common goal. It should be noted that one of the members did not take a loan but as a group policy each member has to guarantee the other.
She looks after her family since her husband is a peasant and they live in a 5-room semi-permanent house with four of their children. Her family goal is to be able to pay fees for her children's school. She has a retail shop which she has been running for 24 years. With the income she has been able to provide the basic needs for her family and pay school fees.
However she faces a challenge of a high default rate of her debtors and she hopes in the future to upgrade her shop to a wholesale shop. Edith intends to use the credit to buy dry cereal, rice and groundnuts for sale.
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.