Polline O., age 45, is the leader of the Mwavu Teyebaka women’s group on Lumumba Avenue in Kampala. She is married with six children and cares for three orphans. She has a restaurant called Kalo Eating Place in the same location where her group meets, and she has a good clientele. Come lunch time, the place is filled with people from offices and all over town who want to have something traditional to fill their stomachs.
Polline has been taking loans to help her to maintain her restaurant each day, such as buying food ,sauce, plates, cups, and so much more. To date, she is so happy about it. She now needs another loan to help to buy more food from the villages where the prices are cheaper.
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.