Rose is a 37-year-old married woman with 5 children living in Kyenjojo, Uganda. She accumulated capital from farming and started a retail shop where she sells general merchandise and agricultural produce like maize and beans. She decided to set up the business after realizing that her husband alone could not meet the daily expenses of the family. Inadequate capital to meet the high demand is her major challenge, while her dream is to own a wholesale shop. She is a member of the above mentioned group where each one guarantees the other in accessing a loan. Rose intends to use the money to buy maize and beans to sell.
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.