Lydia is an upright Ugandan citizen, who is in her late 50s. She is married and has seven children, two of whom attend school. She has been selling retail commodities like soap and sugar, among others, to her community members in her retail shop, for a period of 18 years. She works from 8.00 am to 5.00 pm daily, and she is able to make a small monthly profit through the sale of her retail products.
With this loan, Lydia is hoping to increase her retail shop's stock and see herself progress. She says the main business challenge she is facing is the high cost to ferry merchandise from Rukungiri Town to Ndere-Ruhinda, approximately 38 KM away. She says the extra income generated as a result of this loan will enable her to improve the welfare of her family. In the future, Lydia plans to build her own business empire, where all the basic, necessary requirements can be found in one place -- hers. She uses her profits to pay school fees, and cover household expenses. Her dream is to one day be able to build and finish a house. She thanks UGAFODE Microfinance Limited (MDI) for the good service it renders to its esteemed clients.
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.