Julius is a 28 year old hardworking man with two children living in Hioma, Uganda. In order to support his growing family he decided to venture into produce business and with the proceeds he has been able to pay school fees and construct a house for residence. Unpredictable weather changes and price fluction pose a challenge to his business growth while his desire is to own a food store. He is a member of the above mentioned group where each one guarantees the other in accessing a loan. Julius intends to use the loan to buy produce such as beans and maize 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.