Mathew, whose hand is raised in the group picture, is a 38-year-old married man living in Bundibugyo, Uganda. He sells beans, rice, cassava flour and fish to people around town. In addition to that, he generates income from cocoa harvests, which has helped him to improve his household and provide school fees for his children.
Despite his progress, price fluctuations and weather changes affect his business a lot. He is a member of Abamwi Women's Group whereby each member guarantees the others to get a loan. Mathew is requesting a loan to buy beans, rice, cassava flour and fish to sell.
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.