Suzan N. is married with 4 children, all in school. For the past six years, she has been selling used clothing for women, men, and children from Jinja Market. She buys her stock from the large market in Kampala and some times from Jinja, from the recently opened stores, at a discount and then displays the items for sale at a higher price. For the stall in the market, she pays a daily fee to the authorities and with her loan, she plans to buy a bale of used clothes for her stock. By buying in larger quantities, Suzan can get a larger discount, hence more profits. She has been a member of the Iganga Road group for 2 years.
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.