Nathan K. is the chairperson of Agali awamu Tukole group in Mityana. He has a business of selling produce such as beans, maize, and maize flour, ground nuts and many other products. He has had this business for 1 year now. When he had just joined his lending group, he was selling clothes in the daily markets around Mityana and Mubende, but because of his age he changed businesses. He buys the produce from farmers all around at a favourable price for him and then sells it both retail and wholesale from his store in Mityana town. Nathan is married with 10 children, 3 of whom are in school, ane he also cares for 1 grandchild. The profits he makes help him so much with paying school fees, as well as caring for his family, and paying rent for his store premises. Nathan needs a loan to be able to buy more produce for sale.
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.