Goret is a forty-five-year-old married woman with eight children living in Kasese, Uganda. For ten years now, she has been operating a retail shop. She started this business to supplement her farming activities. As the good mother that she is, she wants to educate her children so that they have degrees as a minimum qualification, even though she never had a chance to further her education herself due to the low level of her parents' income. Price fluctuation and high license fees affect her business plan. Her dream is to have a wholesale shop. She is a member of the above mentioned group where each one guarantees the other in accessing a loan. Goret intends to use the loan to pay for her children's school fees.
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.