Erick is a 34-year-old married man living in Kamwenge, Uganda. He owns a clinic, and its his main source of income. He also practices farming where he grows maize, beans, Irish potatoes, sugarcane, and bananas.
It is from this business that he has been able to sustain his family and educate his children. High license fees reduce his profit projections, while his dream is to own a big pharmacy in Kamwenge. He is a member of the above mentioned group where each member guarantees the other in accessing the loan.
Erick is requesting a loan to buy drugs to resell.
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.