Richard, with a hand raised, is a member of a village bank, where members guarantee one another for a loan. He is a 32-year-old, married man with four children, who is in a produce business selling and buying maize in Kyenjojo, Uganda. He also has been in farming for many years. Now he also packs maize for sale. His hardship is that the business is seasonal, given the fact that farmers depend on the availability of rainfall. His vision is to become a market leader of produce. Richard needs the loan to buy produce like maize to sell.
More information about this loan
This loan is part of HOFOKAM's program targeting poor and geographically excluded populations in Western Uganda. In addition to loans, it provides social and business training programs to low-income entrepreneurs and their communities. Since 2003, HOFOKAM has provided sustainable financial and non-financial services to promote social, economic and sustainable land development and improve the quality of life for vulnerable populations. The organization has a clear vested interest in underserved communities with its headquarters in rural Fort Portal and a number of branches in extremely remote areas.
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.