Joseph is a 36-year-old married man with six children living in Kyenjojo, Uganda. He is a builder and has been in service for 10 years. He acquired experience and skills from a vocational school, and now he gets contracted to build. He does not get paid by his clients until the work is finished, so all costs while the work is in progress are his.
He has a problem with customers not paying on time and high initial costs. However, with the money earned from his previous contracts he has been able to buy land and construct a permanent house for residence. Joseph intends to use the requested loan to pay employees who help him in building.He is a member of the above mentioned group where each member guarantees the other in accessing a 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.