Fred, Bena, Twaha and Zabina are members of the Tweweeyo Women’s Group, which is located in the Lweru trading center. They have applied for a group loan which will allow all of them to expand their businesses.
Fred sells yellow bananas to retailers and traders, and would like to buy more produce from farmers to sell to his clients. Bena sells local brews known as waragi and malwa, and would like to buy more sorghum and pots to make his work easier. Twaha deals in scrap, which he buys from the surrounding villages and sells to steel plants. He will use his loan to buy more materials to sell. Zabina has a six-year-old restaurant in Lweru, and needs a loan to buy more plates, spoons, saucepans and charcoal for cooking food.
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.