Zahra is 30 years old. She is divorced with two children, aged eleven and four years old. Since 2005, Zahra has been selling firewood and charcoal. She works daily and earns a monthly profit of about $250 from her sales.
Zahra is requesting a loan of $525 to buy more charcoal and firewood to sell. She will share this loan with her subgroup members, Salma and Mtumwa, who have their own businesses selling charcoal, bread, and clothing.
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.