Steven is a small produce trader supplying a number of schools and other dealers in Kasubi, a Kampala City suburb. With seven children all in school, he doesn’t find time to rest because his financial needs are so demanding.
He says that he wants his children’s major inheritance to be education and has applied for a loan of UGX 1,000,000 to boost his agricultural produce business since it's now harvest season in most areas. When he sells after the harvest is over, he will be able to make a big profit and overcome the challenges of inadequate capital. In turn, he will be able to meet his children's educational needs. He has enjoyed a lot from his small loans and says that due to his honest dealings with the micro finance providers, he has been able to keep on a progress track and he hopes that he will enjoy a good partnership with Kiva.
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.