Mary, a member of the group, makes snacks in a nearby trading center. Her dream has always been to venture into baking but her constraint is limited resources, which means she cannot buy the equipment necessary for the business. She is excited that the loan journey with Ugafode will prove fruitful and she will soon realize her dream of making cakes. She thanks her fellow group members for being supportive and the lenders for meeting their needs. She will buy peas with the loan to make snacks commonly referred to as samosas.
More information about this loan
This loan is part of UGAFODE's program for clients who live in isolated rural areas with limited access to financial services. Uniquely, UGAFODE focuses its efforts on agricultural areas in Uganda that are over 50 km from their branches, providing loans to both groups and individual borrowers. The organization believes that the risk of offering services to remote clients is outweighed by the benefits to customers and their often underserved communities.
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.