Alex is a 30-year-old married man who lives in Fort Portal, Uganda. He is a member of Bunyonyi Ageteraine Group, a village bank where members guarantee each other whether they take a loan or not, because they are all small business owners operating in the same localities.
Alex deals in selling fresh foods like tomatoes, cabbages, and cassava to sustain his family. Theft in his region is a major threat to his business.
Alex is asking for a loan to buy building materials like timber and cement.
The extra members in the group are also group members who save and guarantee one another but have not taken a loan this time.
More information about this loan
This loan is part of HOFOKAM's program targeting poor and geographically excluded populations in Western Uganda. In addition to loans, it provides social and business training programs to low-income entrepreneurs and their communities. Since 2003, HOFOKAM has provided sustainable financial and non-financial services to promote social, economic and sustainable land development and improve the quality of life for vulnerable populations. The organization has a clear vested interest in underserved communities with its headquarters in rural Fort Portal and a number of branches in extremely remote areas.
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.