K. Naome is the leader of Muvo women’s group in Lugazi. Along with taking care of, and paying school fees for her five children, she also looks after two of her relatives' children. Naome has a retail shop which she has maintained and expanded with the assistance of her first loan. She is requesting another loan so she can buy more products like bread, toothpaste, cooking oil and other products for her shop. By joining this lending group, she hopes that she can get a loan to help improve her business and the life of her family.
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.