Mary is 37 years old. She is divorced and has three children. She has been selling ladies bags, shoes, and clothes through door-to-door sales for eight years to support her family.
With the loan, Mary wants to buy more stock of clothes, shoes, and bags to increase her inventory and sales for a good income. She believes this loan will help her save more money to rent a shop to house her goods.
She is a member of the group called “My Home Trust Group". Members of the group agree to guarantee for each other to repay the loan.
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.