Halima is 20 years old and she is single. She has been a bites seller since 2001. Every day, she works from 10am to 6pm at her business and can earn a monthly profit of about $125 from her sales.
Halima is now requesting a loan to expand her business. She will share this loan with her subgroup members, who have businesses dealing with charcoal sales, coconut and fish sales, fish, juice and clothes sales.
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.