Amanda, 22 years old, is a married woman with one child, age 3. Amanda is a wholesaler, a business she started in 2007. She works everyday from 7 a.m. to 6 p.m. and can earn a monthly profit of about $120 from her sales.
She now hopes for a loan of $350 to buy more commodities for her business and to open a new business. She will share this loan with her subgroup member, Jesca, who has a business in cloth 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.