Kyamabaare Farmers was formed to meet the needs of farmers within Kyamabare Village. They had been progressing but lacked farm inputs to enhance their productivity. When the Ugafode staff approached the area six years back, the members were excited because it would answer the cries of the farmers. They gladly embraced the opportunity and have been acquiring and paying their loans up to today. Vangirista is particularly happy because she has been able to educate some of her children through selling tomatoes and bananas. Vangirista wants to say thank you to Ugafode and the Kiva lenders because she does not know what she would have happened to her large family of 10 children and a jobless husband without the support of loans. She will use the loan to buy organic fertilizers such that she can increase the productivity of tomatoes and therefore her income. The group has hard-working and honest members who are supportive of each other.The first four members, three of them holding forms on the front row from the left are committee members who are resting this cycle but have signed the waiver forms.
More information about this loan
This loan is part of UGAFODE's program for clients who live in isolated rural areas with limited access to financial services. Uniquely, UGAFODE focuses its efforts on agricultural areas in Uganda that are over 50 km from their branches, providing loans to both groups and individual borrowers. The organization believes that the risk of offering services to remote clients is outweighed by the benefits to customers and their often underserved communities.
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.