Besi is a single mother of 38. She has four children and three dependents who all attend school. She sells charcoal to the low income people in one of the city slums–Katanga–and she also does tailoring to supplement her income as her side business. She took out a loan of 200,000 UGX for the purpose of restocking charcoal to sell during the Easter season. Her main clients are her neighbors and well-wishers. Her major challenge is bad weather: during the rainy seasons vehicles can’t go to the villages to collect charcoal, which reduces her supplies to sell to her customers. Her hopes for the future are to see her children prosper and to continue to borrow more money from Ugafode to sustain her business and pay for her children's tuition.
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.