Samuel is a 48-year-old married man with eight children who lives in Masindi, Uganda. He leads a loan group whose members came together because they have similar economic and social interests. Samuel has been practicing farming for 18 years, and uses his income to pay school fees for his children and buy more land for farming. His business is affected by fluctuations in weather and prices, and by inflation. His dream is to educate his children, build a permanent home and modernize his farming activities. Samuel intends to use his portion of this loan to buy seedlings to plant.
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.