Stephen is a 38-year-old married male with six children, four of whom attend school. Stephen is a farmer dealing in crop production in a rural area. He began the business to improve his family's livelihood. Stephen wants money to buy pesticides, fertilizers and to pay for labour. He is a hardworking and honest man; however, the many changes in the weather affect his productivity. Stephen is a member of Kinyayobyo Rural Farmers where each member guarantees the other to get a loan since they don't pledge security.
It is a group policy to guarantee one another whether you are taking a loan or not.This explains why there is an extra person.
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.