Ronald N. is 45 years old, married, and has four children, all of whom attend school. He is a stickler for diligence and hard work, which have positively impacted not only on his six-year clothing sales business but also his family's standards of living. He has given a new lease on life to his family with earnings from his clothing sales business, which he operates in Bulenga, a growing suburb in the metropolis of Kampala. To get established in this business, Ronald relied on a loan to purchase clothing. What has made his business grow successful is the fact that Ronald strives to bring in new bales of clothing to sell almost every week, which is popular with both his old clientele and his new clients. The future looks bright for Ronald and he says with this loan, his business will continue to imporve. At present, this business generates weekly profits of 120,000 shillings. He says with this loan, he is going to purchase more bales of clothes that he can resell and make additional profits.
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.