Seguya is 45 and the happily married mother of five buoyant and high-spirited kids who all go to schools in and around Kampala. For the last five years, she has run a used clothing business in the biggest market in Kampala. Seguya says she has been able to provide for her family with earnings from this business. As anyone in Kampala would testify, business in this boisterous market is good and the market is highly popular with all communities in Kampala. In addition, other people from Uganda frequently visit it to buy the cheap second-hand commodities that are sold there.
Seguya began her business under the financial auspices of her brother and she currently generates a monthly profit of 700,000 UGX. She is requesting a loan to purchase more bales of used clothing to sell. This is a group loan, and one of the clients, named Aisha, is partly obscured in this photo and another client, named Moses, is not pictured. Seguya, who is the lead client of this group, is in the front row wearing a red t-shirt.
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.