Though Amancia had been selling her handmaD. clothes and ceramics for twenty years before she joined her Esperanza Bank of Hope (of which she is a group leader), her loans have had an undeniable impact on her life. In terms of her business, she has been able to widen the variety of merchandise her business offers. Not only that, but the loan has inspired her to start thinking more ambitiously and entrepreneurially: she has learned to gauge what her customers want, and hopes to one day move her business into a permanent stall. In terms of her family and community, she has taken leadership roles in both. She makes sure that her grandchildren have everything they need for school and medical supplies, and buys them clothes when she sees something she thinks they would like. Her home serves as the meeting site for Bank of Hope meetings, where she often serves lemonaD. and snacks to everyone. During this particular meeting, Amancia remains modest when I ask her questions—but her fellow group members chime in to tell me accomplishments she has left out. Everyone present—the other associates, her loan officer Cristina—seems incredibly proud of her.
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.