Julius is a 34-year-old married man with three children living in Bundibugyo, Uganda. He deals in cocoa and also rides a motorcycle for his transport business. He has been in the transport business for ten years and he used his agriculture profits to buy a motorcycle. The main hardships the client is facing are customers not paying on time and seasonal weather changes that are affecting his cocoa yields. His personal goals are educating his children in better schools and constructing a better house. His business goals are to buy more land for farming and expand his business into new markets. He is a member of the above mentioned group and as per group policy every member guarantees the other in accessing a loan. Julius intends to use the loan to renovate his residential house and harvest his cocoa plantation. He is the one wearing a white shirt and squatting.
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.