Mary is a married woman with three children and two dependents. She is a resident of the Maganjo Kijapan zone. She is a first-time borrower in UGAFODE Microfinance LTD and has borrowed 500,000 UGX. She deals in buying and selling charcoal, a major item that is in demand by many of the low-income earners because it's affordable. The purpose of the loan is to buy more sacks of charcoal for her business. Her challenge is weather because during the rainy seasons, vehicles cannot go to villages to collect charcoal. This leads to delays. The high tax rate and high transport charges are some of her other challenges. However, she has been able to earn a living from her business and to look after her children. Her dream is to buy a plot of land for her children and build rentals for them, which will help her reduce her rent costs.
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.