Aidah, a single mother of 5 children, lives in rural Lyantonde. Having no source of income to depend on except subsistence farming, Aidah resorted to selling charcoal since it was in demand by the town dwellers who can not afford gas, let alone the high cost of electricity. Through the sales she has managed to save some money to pay for her children's tuition as well as meet other household demands.
Because her capital base was so small she, together with eleven other members from the same village, sought out financial assistance. There was no better alternative than Ugafode since the other institutions in their reach are commercial banks that can not lend to her category of people (rural poor).
She will use the loan to buy more stock such that she can increase her profits and buy a plot of land on which she will build a residential house in the future. She is a hardworking woman, though her challenges are that she has no alternative sources of income and has to strain the business for all the household needs.
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.