Hildah is a widow who has five children. She ventured into business after the death of her husband. With few resources, the many demands of the family encroached on the capital and she was forced into borrowing. She therefore had to seek assistance from a financial institution. Ugafode fit her requirements, and she has never regretted the choice she made. She now buys baby goats that she rears and sells when they have grown and increased in value. Since she joined Ugafode, she says her business has expanded and so has the standard of living of her children. She has even kept them in school. Hildah's lending group has mentored her emotionally and spiritually. The photo includes group members and the Ugafode staff. The eighth person is the secretary of the group who is resting. The group has social cohesion.
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.