Annet is a 26-year-old, hard-working lady with one child, living in Fort Portal, Uganda. She operates a secretarial bureau and with the proceeds she has been able to pay school fees for her children. Insufficient electricity supply hinders her business, while her dream is to buy a generator and expand her business to new areas.
Annet is a member of the above mentioned group (Kanyamakerre Tukwatanize Group) in which each person guarantees the other in accessing a loan. Annet intends to use the loan to buy stationery items to sell, such as pens, paper, and box files, among other things.
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.