Mafumu, Kyosiga Group
The income of a primary school teacher in his locality is not sufficient for all the necessities in his home and so James started buying and selling coffee beans. He buys dried coffee beans from farmers and takes them to the coffee factory for removal of the husks. Customers are usually at the factory ready to buy. He uses the husks for manure on his farm but he can also sell off the excess. James also buys fresh coffee beans from farmers and dries them at home, thereby lowering his costs. He also books orders from those coffee plantations that are yet to be ready by paying a deposit to the owners. This business has allowed him to support his family and to buy pigs and chickens for his wife to keep at home for their farm.
James is a good client of Pearl Microfinancing in the Kyosiga Women’s group, making his repayments promptly. Now he needs a loan to buy more coffee seeds. He employs workers to move around on bicycles to the villages to purchase the coffee beans, but at times they are not fast because of the hills and his dream is to buy a motorcycle to make the process much easier.
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.
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