Twenty-seven-year-old Simon is a clever entrepreneur. He owns and drives a boda boda (motorcycle taxi), and he jointly owns with his a wife a motorcycle repair and parts shop. This greatly reduces his maintenance and repair costs, allows him to naturally solicit his colleagues for business, and it keeps his family working together. Simon is a seasoned veteran, having been driving a boda boda for nine years. Over the years, he has acquired a faithful clientele.
The loan proceeds will be used to replenish the stock in the spare parts shop. Simon’s ambition is to turn the spare parts business into a wholesale distribution business. This is a less cyclical business and larger volumes will contribute more income to the household. Simon also aspires to own a small fleet of motorcycles for rental of them to drivers on a daily basis. He and his wife struggle to pay school fees for their three young children and dream of one day sending them to Uganda’s finest schools.
Other entrepeneurs in this group have similar goals.
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.