Anna is a married woman with 2 children aged 10 and 7. She became a caterer in 2008. Every day, she works from 9am to 6pm at her business and can earn a monthly profit of about $110 from her sales.
In the past, Anna has taken out 1 successful loan from BRAC Tanzania to expand her business. Anna now hopes for a loan to buy dishes and chairs for her business. She will share this loan with her subgroup members, who have businesses dealing with clothes and vegetable sales.
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.