Prossy is a 38-year-old married mother of five children, ages 6 - 16, and the foster mother of her orphaned niece. She has owned and operated a retail grocery shop for 8 years. Before she became a member of this borrowing group 6 years ago, Prossy's shop did not have enough goods to sell, due to insufficient capital, which restricted the income that she needed to provide for her family.
Now, with loans, she is able to buy more stock, which improves her revenue. With the increased income from her shop and her savings, Prossy and her husband hope to buy another plot of land and build rental homes as an additional source of family income.
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.