Justus is a married 31-year-old and a resident of one of the rural outskirts. He has two children one of whom attends school. He started up a small business dealing in agricultural produce about 4 years ago. After which he started up a retail shop in order to increase his income. He has decided to take up a group loan of 500,000 UGX for the purpose of buying a fridge so that he can serve his customers cold drinks and also preserved foods. This will help him to become more competitive and therefore increase his income. He is going to buy stock for the Easter season. His main clients are the neighboring community members. He plans to buy a plot of land and a house for his family in order to reduce the expenses of rent which in turn can help him increase his savings. The largest challenge is competition from his neighboring retailers.
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.