Madinah T., a married woman with five children and the care of two dependent relatives, is an executive member of Tusooka Kwavula group in Lugazi. A long-time owner of a hotel / restaurant business, Madinah has been able to buy more equipment such as sauce pans, plates, spoons, forks, tables and seats for her restaurant through the help of previous loans. She has also been able to include a greater variety of foods on her restaurant menu, something that seemed impossible when she first joined her lending group.
Now requesting another loan to purchase more plates and foodstuffs for her business, Madinah is grateful that through her various meetings with her group members, she has learned to manage her loans with prompt repayments.
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.