Joan N. is married with children, the eldest being 16 years old while the baby is 3. For the past six years, she has been selling goods from her retail shop in Jinja town. She buys her stock from the wholesale shops in Jinja and Iganga at a discount and then sells at a retail price. She is among the many people that have benefited from getting loans and her loan uses range from owning a plot of land of her own, paying school fees for her children with almost nothing as a contribution from their father, plus many others. Joan seeks another loan to be able to buy more shop goods like sugar, maize flour, and many others.
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.