Jemima, standing second from the right in this photo, is the representative of this six-person group loan. Most of the members are married and their average age is 34 and they each have two children. The women all live in the same neighborhood and work buying and selling a variety of merchandise, including cosmetics, plates, corn dough, lining, wax-print, scarves, and bed sheets. Group members decided to join the loan program of the microfinance institution ID-Ghana with the goal of satisfying their fast-growing customer bases. They have successfully repaid previous loans.
The group is requesting a 2,950 GHS loan to expand their businesses. Jemima works selling wax-print scarves. Her products are in high demand by her customers and she will use her portion of the loan to purchase wax-print material and scarves wholesale from the central market to resell to customers. She will use the profit from her loan to reinvest in her business and help her husband to meet their household needs.
About ID Ghana
ID Ghana is a microfinance NGO that provides financial and social services to underserved urban communities in Accra. ID Ghana’s socially-oriented business model provides clients with a number of social services, including financial literacy training, group discussions led by peer educators on health and nutrition education, child schooling, basic medical services, and counseling and legal services for women victims of violence.
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.