K. Moses is a client of Pearl Microfinance in Lugazi. He has a salon in which he has 6 years of experience. He is 26 years of age and married with one school-going child. He also cares for his relatives in the village. He has been a member of his lending group for two and a half years. He got his capital to start up his own salon from his first salary as an employee in a friend's salon until time came for him to do his own. The loans have helped him to buy more appliances for his salon, and now he seeks another loan to be able to buy a hair shaving machine and two comfortable chairs for his customers for more comfortable men's and women’s hair cuts.
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.