George is a second-time borrower with UGAFODE Microfinance Ltd (MDI), applying for a loan through a group. He is married with one child. He operates a small bar business in Maganjo on the outskirts of Kampala. Here, he also runs a pool table business with a help of one employee. George says that this has enabled him to take care of his family.
Besides looking after his family, he has also managed to pay tuition for his two young sisters. His major challenge is inadequate stock. He also wants to top up on money to buy another pool table but is constrained by financial ability. This is why he is applying for a loan to buy another pool table such that he can increase his income. His future plan is to work hard and have his own commercial house as well as lift his family to a better financial position.
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.