Ezron is a 45-year-old married man living in Kyenjojo, Uganda, with five school going children. He operates a footwear retail shop and he got start up capital from farming. He started this business to supplement his income so as to enable him to meet the family needs and pay school fees for his children. His main clients are the rural people surrounding his village. He has a personal goal of putting up a residential house for the family and a business goal of expanding his business into new markets to attract urban dwellers. Ezron intends to use the loan to buy shoes to sell. He is a member of the above-mentioned group where each one 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.