Zainab, 49, is married with three children between the ages of 4 and 8. She has operated her own food shop since 1999, working daily from 7 a.m. to 9:30 p.m. and earning a monthly profit of about $80 from her sales.
Zainab is now requesting a loan to buy more food items for her business. She will share this loan with her subgroup members, who have businesses operating a general shop, selling clothes, and retailing CD’s.
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.