Yakobo is a male aged 48, a father to 13 children, living in Kagadi, Uganda. He owns a carpentry workshop and has been making furniture for the last 21 years. He has difficulty resulting from inadequate capital and modern equipment to use in his business. He dreams of educating his children, expanding his business to new markets and acquiring modern equipment. He is a member of a group where each one guarantees the other to access a loan. He wants a loan to buy lumber for making furniture.
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.