Joy is a married woman, age 36, living in Kagadi, Uganda. For two years, she has been running a restaurant. She got the initial capital from brick laying, a business she still does. Inadequate capital is affecting the business while her dreams are to venture into new markets and own a hotel. Her personal dream is to see her children graduating with degrees since she did not have a chance of going to the university. She is a member of a group where each member guarantees the other to access a loan. Joy is requesting the loan to buy food for the restaurant.
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.