Bonefance is a 35-year-old married man, living in a semi-permanent house in Kyenjojo, Uganda. He started as a farmer, but now he is the proud owner of a beauty salon, which he has owned for three years. His desire is to expand his business to other areas. He intends to invest the loan in a generator for his salon.
Bonefance is a member of a group where group support is required for loan access.
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.