Charles is a forty-two-year-old married man with nine children, and he owns a house in Kasese, Uganda. He has been selling maize flour and soap for ten years. He started the business with 100,000 shillings, and now he has 1,000,000 shillings as his working capital. His hardship is price fluctuation that causes him losses, and his vision is a wholesale business plus an educated family. Charles needs the loan to pay school fees.
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.