Kalen is a sixty-year-old man, married with sixteen children, who owns a house in Kasese, Uganda. He is a member of the Abeteraine Bughoye group in which members co-guarantee each other for access to credit. He has been dealing in agriculture businesses, doing both farming and selling beans, maize, ground nuts and bananas for four years. His hardships are price fluctuations, bad seasons and high transport costs. His vision is to have a well established food stuff shop, plus educating his children to university level. Kalen needs the loan facility to enable him buy bananas, beans and maize flour for selling.
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.