Muhamadi is a 43-year-old man with five children living in Fort Portal, Uganda. His main business is a retail shop alongside farming as an additional source of income. Customers who delay to pay and increased levels of competition pose a challenge to his growth, while his dreams are constructing a house and buying a car.
Muhamadi intends to use the loan to buy sugar, salt and bathing soap to sell. He is a member of the Imaranjara Tusisimuke group in which 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.