Robert is a 43-year-old married man with four children living in Kasese, Uganda. He has been dealing in electronics for 17 years and also offers the service of installing them in houses so as to earn additional income. He started the business in order to raise money for his growing family and has since reaped tangible benefits. Bad debtors and inadequate capital are his major setbacks, while is goal is to trade in wholesale.
Robert intends to use the loan to buy electronic appliances to sell. He is a member of the above-mentioned group, in which each one guarantees the other in accessing a loan.
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.