27-year-old Silivester joined the motorcycle transportation business five years ago. The self-assured and congenial father of two says he joined this business to make some income for himself so that he could provide for his family. Before that, he was mostly involved in odd jobs like working in washing bays around Lugazi town. This business, despite its drawbacks, has enabled quite a number of young Ugandans to make ends meet. Many young people have now extricated themselves out of their narrow circumstances. This business, however, has of recent come under some criticism from firebrand politicians who claim the commercial motorbike riders are the sole cause of traffic jams in the metropolis of Kampala. It’s ironic however, because most rank and file people rely on these motorcycles to beat the frustrating traffic gridlock in towns and cities. Weekly he says his income totals up to Ugandan shillings 100,000 and he says with this Kiva loan he is going to purchase better spare parts and tires for his motorcycle.
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.