Bonifance is a 32 year-old married man who has four children living in Kyenjojo, Uganda. He operates a retail shop where he has spent five years. This has helped him to earn income which he has used to educate his children. Bonifance also does farming. He grows Irish potatoes especially. He has always reaped tangible benefits and he even used these profits to start the retail shop. He has a challenge of customers not paying on time. His business plan is to expand to new areas and buy more land for farming. Bonifance is requesting a loan to buy general merchandise such as salt and soap to sell. Some of the members in his group did not take the loan but as it is a group policy they had to guarantee their members in order to access credit.
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.