Salima, a member of Cinderella group, is 30 years old. She operates a boutique located in Makindye, a suburb, and has been in business for the last two years. She saved some money when she was teaching since she is a teacher by profession. Salimah believes working for others cannot generate enough income to look after the family very well, so she started her own business selling ladies' clothes, and it is doing well. Salimah has hopes of expanding her business so that she can serve all her customers' needs. Since the trends keep changing, she wants to be able to buy as the trends change. Salimah approached UGAFODE for a second loan of 1,000,000 UGX to invest in her business. Salimah is humble and hard working and thanks UGAFODE and Kiva lenders for the financial support.
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.