Joseph is a 31-year-old married man with six children aged between 14 and 6, living in Kagadi, Uganda. He owns a piggery business and supplements his income with farming to be able to meet his family needs. He is detrmined to change his life and those of his dependents for the better by sending his children to school and building a permanent house, as they are currently living under a mud-wattled house. He is a member of the above mentioned group, where each member guarantees the others to access a loan. Joseph's business plan is to own at least 400 pigs since their reproductive rate is high, and that is why he is requesting for this 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.