N. Regina, an executive member of the Tusooka Kwavula women’s group in Lugazi, is a married lady who has owned and operated a bar for over 10 years. She sells a variety of beverages ranging from a local brew with malwa, waragi, and tonto to bottled beers and wines.
Regina says that before the loans, she used to sell only local brew, but joining her lending group has helped her to transform the business. She now has a plan to make the brew herself for increased profits, but its feasibility depends on the availability of time, since she has only one person to help her out in the bar.
She is now requesting a loan to help purchase more beer and local brew in order to accrue more profits and savings.
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.