Fred M. is a hard working and ambitious young man of 31 years of age He is the leader of the Kamu kamu women’s group B in Kayunga. Fred has had a wholesale food shop in the Bukeeka township of Kayunga for 10 years. He is married and has three children (ages 10, 5, and 3) who are all in school. He has been in this lending group for five years now. As a result of his work with and involvement in this lending group, Fred has bought four boda bodas (bicycle taxis) and with this loan, he plans to buy another boda boda and other goods for his shop. Fred’s wife is a farmer who manages their farms with hired helpers. Fred and his wife have a dream of one day buying a commercial car.
He will share this loan with his group members.
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.