Francisca G., 36, is married and the mother of two, aged 2 and 13. She has used her four Esperanza loans to start her own clothing and accessory store, and hopes that her future loans will bring her business growth and her children everything they need. Francisca is a group leader in her Esperanza Bank of Hope, Hebreo.
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.
A portion of Hebreo, Group 1's $775 loan helped a member this group of women would like to improve their various businesses, like Fantasia who would like to improve her clothing and accessory business.