The group bank Palo Rosa Uno ("Rose Stick I") consists of 14 partners who dedicate themselves to working hard and strengthening their small businesses with the help of credit given by AgroCapital. The group is located in the Pampa La Madre zone of Montero, in the tropical Santa C. region of eastern Bolivia.
Most of the group members have businesses in the German Moreno market selling animals, animal feed, food (sweets, salteña pastries, dry goods, and vegetables), and cosmetics. Most plan to invest their loan in additional livestock or supplies for their respective businesses.
The group's president, Elena M., has bought and sold livestock in this market for more than 15 years. She says that she is very happy to be working with the institution, having been a client now for more than a year. Newly reorganized, the group is quite excited to begin working toward common goals.
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.