Elisha is a 34-year-old married man with three children living in Kyenjojo, Uganda. He operates a drug shop where he has spent five years (since 2008) working for at least 10 hours a day. He serves the rural community in his village which has greatly helped the people from covering longer distances for drugs. He is also a farmer and that is where he accumulated capital for this business. He faces challenges of inadequate capital and customers not paying on time. He has personal goals of educating his children and building a permanent house for his family. He is a member of the above mentioned group where every member guarantees the other in accessing a loan. Elisha is requesting for a loan to buy drugs 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.