N. Aisha is the treasurer of Twezimbe Women's Group in Lugazi, Lweru village. She sells used clothes as her main business, without the benefit of a fixed location, but by walking around busy markets and taxi parks. She buys the clothing in bags or bales from Kampala, which usually include children's and ladies' clothing. This is not an easy job and most, like Aisha, would like to be able to afford to rent a storefront. She says that if she opens a shop in the future, she would want to keep up her current trade and, due to old age, maybe hire someone to do the moving around for her since it is also a profitable business.
Aisha has been in the business for a very long time. In fact it was her first business although she has added others, like farming on a small scale for both sale and home consumption, as well as owning two cows and poultry. She is married and has ten children and she cares for three orphans. She is paying school fees for 5 children. With her portion of the group loan, she plans to buy more used clothing to sell to her customers in the various markets.
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.