Mkiaka sells perfumes at a small shop in Zanzibar. She currently earns approximately $30 each month but she hopes that by taking out her first loan through BRAC Tanzania she will be able to increase her profit and expand her business.
Mkiaka is married and has a two-and-a-half year old child. She will be sharing this loan with her group member, Miti.
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.