Matia is a 43-year-old, married man with eight children living in Kasese, Uganda. He has been in the charcoal and firewood business for six years and also does farming as an additional income source. He says that if he had enough capital, he would deal in solar and bio gas since his current business is affecting the environment. He only does it to support his big family. Like most good fathers, he has dreams of educating his children to attain degrees as minimum qualification. Matia intends to use the loan facility to buy charcoal and firewood to sell. 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.