Resty S. is a 31-year-old married mother with two children, aged 8 and 10. She also cares for her deceased sister's four orphans and her brother's two children. Resty operates a hair salon in her home. Her specialty is applying braid extensions that she buys in bulk quantities each week in Kampala's wholesale markets. All of her business is earned through referrals by existing clients. Resty enrolled in vocational school four years ago to learn her new trade and fulfill her goal of becoming a hairstylist. She began with just a chair in her sitting room; now, thirteen loans later, she has a complete salon attached to her home. Resty uses the proceeds from her loans to purchase braids and other supplies for her shop. Resty services five women on average each week and makes a fixed profit of 10,000 UGX per client. By injecting her earnings back into her business, Resty is on her way to realizing her ambition of building a salon on her village's main street so she can attract more clients, and launching a wholesale hair and beauty distribution business.
Resty was elected chairperson of the Tusabe Mukama lending group because of her leadership skills, business acumen and friendly personality. With a family that includes two children and six orphans, Resty's household depends upon her income to pay for school fees, food and clothing.
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.