K. (age 32) is one member of the group. She has owned a restaurant for 8 years, from which she serves breakfast, lunch, and supper to the locals. She would use the loan to buy chairs and a table, and also to pay the salaries of her two employees. She cooks and prepares a range of meals including bananas, sweet potatoes, rice, meat, chicken, fish, and greens. She works from 5am to 9pm, then returns home to her husband and three children. Her eldest child is ten, and K. hopes that her daughter will become a nurse when she finishes school. Her husband works as a driver.
Sarah (age 33) has been purchasing scrap metal from the locals for 12 months now. Each month she hires three workers and a driver and his truck to take her the 40 miles to the nearest town, where she sells the scrap to a large merchant. She sells between five and seven tons of scrap metal each week. She also has a small sugar cane farm and employs one worker to run it. She would use the loan to pay the salary of her farm worker, and in this way she could keep both businesses afloat. Sarah is married and has eight children ranging in age from 17 to 2 years old. Her husband owns a general store. She hopes to pay for her eldest child's tuition in a business course. She would like him to become a tailor.
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.