Christopher is aged 23, single, and living in the rural Rukungiri District. He is a businessman who owns a video hall and a bar. He has been engaged in these businesses since 2010. He started these businesses to supplement his parents’ income, since he lives in a large extended family.
Christopher is applying for this loan from UGAFODE Microfinance Limited (MDI) with five other fellow youths in Katugunda Development Group in order to buy a pool table. This will help him expand his working area and bring in more income.
With this investment, he is planning to provide his services to customers in nearby villages who enjoy the game, instead of trekking the long distance to the town center. He thanks UGAFODE Microfinance for providing loans to even the youths, so they too can be financially independent, rather than being dependents.
Christopher is planning to expand his business more in the future, and hopes eventually to open a bigger and modern video hall with high standards.
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.