Siira is a married man with three children who grows maize and Irish potatoes. He is living in Kyenjojo, Uganda. He is a primary school teacher and earns a salary from the government. He is a member of a village bank group where members without security get a loan through group guarantorship. He is faced with the problem of paying school fees for his children to have his dream of educating his children fulfilled because his salary is not enough. Therefore, he is requesting a loan to pay school fees for his children.
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.