Josephine is 44-years-old. She is a widow with five children aged 14, 16, 18, 20 and 23 years respectively. Because she has to pay school fees, only two of her children attend school. Josephine operates a small bar as her major source of income, in Kyenzige, on the outskirts of Kagadi.
Josephine has applied for a loan of ugx.500,000 Ugandan Shillings to buy stock for her bar business so that she increase her earnings from the business to meet her family's needs. Josephine's dream is to buy a piece of land to construct a permanent residential house for the family and also to educate all of her children in the higher institutions of learning.
Josephine's major challenge is the limited source of income she has to achieve her dream. She is grateful that Kiva, through UGAFODE, is interested in supporting her business.
The chairperson of the group who is seated has a running loan and is not taking a loan with this sub-group but signed the waiver form.
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.