Regina, who is in her mid 30's, is married with four children who are still at school. She has been operating a clothing and food business for 10 years. She works from 6:00 a.m. to 6:00 p.m. daily, and is able to make a fair monthly profit. This will be Regina's fifth loan from ID-Ghana, and she wants to use it to buy more clothing and food to sell to customers. Regina will share this loan amount of GHS 2,400 with her group member and they will hold each other accountable for repaying the loan.
About ID Ghana
ID Ghana is a microfinance NGO that provides financial and social services to underserved urban communities in Accra. ID Ghana’s socially-oriented business model provides clients with a number of social services, including financial literacy training, group discussions led by peer educators on health and nutrition education, child schooling, basic medical services, and counseling and legal services for women victims of violence.
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.