Akacucu group was formed way back in 2010 by men and women who had similar problems. These included being widows, widowers, petty traders, low income earners and many others. They joined their efforts together and formed a group to win more recognition from whoever could support them in their needs. Mary is a widow and a member of the group who claims to have lost hope in life when she lost her husband to AIDS, she was later approached by one of her confidants who referred her to the group where she was given counseling by group members in business management and farming. The group members afterwards contributed for her a seed capital of UGX 50,000 which is used diligently and has increased to UGX 300,000. Mary currently runs a grocery business which she supplements with farming. This has enabled her to live positively and to meet her day to day needs including regular hospital visits. Mary’s main challenge now is diversion of her working capital into medical expenses, she has now applied for a loan of sh.250,000 from UGAFODE to boost her grocery during this school holiday where the demand is high.
There are 12 clients in the picture. Two of them will get loans during the next cycle.
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.