Margaret B. is the mother of three school-going children and is also responsible for several orphans. She works as the treasurer of Balikyewunya Women's Group, but is primarily a farmer of bananas, maize, beans, and cassava, which she grows and sells in her local market. Although Margaret has been farming for many years, she has recently started selling clothes as well. Both of these businesses complement each other and provide Margaret with a comfortable income. However, her colleagues in Balikyewunya Women's Group have entrepreneurial spirits and want to develop their own businesses as well. Therefore, as the treasurer, Margaret is requesting a loan of $4800, which will be used to purchase large quantities of clothes for resale.
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.