Yudita is a member of the above mentioned group where each one guarantees the other in accessing a loan. She is a farmer and also sells fish for a living. Yudita is serving very many customers and they value her as a strong lady. She has a dream of starting a retail shop to increase her income and educate her children so they are able to attain degrees as at a minimum. Yudita intends to use the loan to pay school fees for her children.
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.