Beatrice is a 50-year-old married woman with four children living in Kasese, Uganda. For 20 years now, she has been selling cassava flour, and with the proceeds she has been able to educate her children and build a house. Price-fluctuation and prolonged rainy seasons affect the business. Beatrice intends to use the loan to buy cassava flour to sell. She is a member of the above-mentioned group, where each member 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.