Halima N. is a proud member of the Nyikira group and has a tailoring business in Namasuba. She has been in this business for five years now, making ladies' and children's clothes of all kinds for a fee. She buys the materials and people come in to book, buy so that their orders are made to their satisfaction. She needs a loan to help her buy more clothing materials, threads and scissors for her business, since the profits she gets help her to repay back her loans as well as to cater for her four children plus pay their school fees. She has a dream of one day owning more sewing machines to expand her business, as well as starting a tailoring school.
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.