Isa M. is 27 years old and is a member of the Zinunula group in Mityana. He is a businessman with a butcher shop in Mityana town that he has been operating for one and a half years. Prior to this business, he had a business of roasting chicken, but due to the increased price of buying chicken, he changed and now he is happy with his butcher shop. Since the festive season is around the corner, Isa needs a loan to buy more meat for his shop in order to fetch more profits. Isa is not married, but he has a child and pays school fees plus upkeep for this child, while also taking care of his mother in the village. He works alone in the butcher shop and he has a dream that with the accumulated profits, he will one day buy a plot of land and build a house.
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.