Godfrey M. is a 24-year-old married man with 2 kids and he cares for 2 orphans belonging to his late sister. Godfrey is a farmer, has a retail shop and has a new business of brick laying. His wife manages the shop, while they work together on their plantations with the help of hired labor. All his businesses are doing well and the new loan he is seeking is to help pay labor both in his plantations and making bricks and partly to buy a few products that are missing in his shop. He is thankful for the loans because, to him, no business survives without external help and in his case a loan anytime he needs one eases his work.
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.