Petnonela, age 35, is a widow and takes care of her 3 children (ages 10, 8, and 4). She owns a shop, where she sells general items. She started this business in 2006 and now makes a monthly profit of about $110 from her sales. She works from 6am to 7pm daily.
Petnonela took out a previous loan to buy items for her shop. She now hopes to do this again. She will share the loan with Suwa, a member in her loan group, who has a charcoal store.
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.