Ellen is thirty six year old single woman with four children living in Bundibugyo, Uganda. She has a salon business which she has operated for ten years. She hopes to buy a plot and build a permanent house on it for commercial purposes. Her main challenge is lack of enough capital to meet her plans while her dreams are to own a modern salon. The purpose of the loan is to buy more products such as synthetic hair and oils for the saloon. She is a member of the above mentioned group where each one guarantees the other in accessing a loan. Ellen is strategically seated in the first row alone for purposes of identification.
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.