Margulet is age 25 and married with three children who are all in school. She is strategically located in the town center, so that she is able to attract customers who come from different areas of the town. She will buy stock of used clothing with the loan money she receives. This will help to boast the business and therefore increase her profits. She is hardworking and honest, and she urges her fellow women, especially the group members, to be hardworking.
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.