Annet operates a small ladies' salon in her local town center. She started the salon to help meet the necessities of her children and help her husband pay rent for the family home. She has wanted to make improvements to her salon for some time by adding additional inventory items, such as quality hair gels, relaxers, and artificial hair, but she has been unable to do so because she lacks sufficient capital to buy these items.
Annet joined the Basooka Kwavula Group in order to request a loan through Ugafode. She will use the loan to buy quality items for her salon.
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.