The seven members of Evan's Group are married, and the majority of them live in extended family systems. They average 33 years of age, and five of them have children, while the other two members have no child. They all live in Teshie, and they know each other through relatives and their income-generating activities in the market in Teshie, Accra. The members of the group have businesses sewing accessories, and selling diverse goods, including vegetables, ceramic and plastic bowls, provisions, cooked rice and beans, and second-hand clothing. With a view to increasing their capital, the group members decided to approach ID-Ghana for a loan.
Evans (the only male group member, standing on the right) is a clothing seller. He is planning to use his part of the loan to buy one bale of clothing from the market, which he will resell to customers. With this loan he hopes to make an average monthly profit of GHS 100 and, as is the case for other members in the group, this profit will be used to reinvest in the business.
The group members need a total amount of GHS 3,450 to be able to expand their businesses.
About ID Ghana
ID Ghana is a microfinance NGO that provides financial and social services to underserved urban communities in Accra. ID Ghana’s socially-oriented business model provides clients with a number of social services, including financial literacy training, group discussions led by peer educators on health and nutrition education, child schooling, basic medical services, and counseling and legal services for women victims of violence.
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.