GraceT. is one of the executive members of Kilibaki lending group in Jinja. She is a devoted and hard-working lady with a business of selling old clothes in markets as well as running a tailoring business for 6 years. She is happy that now she has a larger bale of clothing to sell and also she now owns two sewing machines with which she does her tailoring work.
Grace has also been able to acquire a bicycle which complements her tailoring business by serving for collecting materials as well as distributing the already sewn clothing to the respective owners. Grace needs another loan to help with buying more used clothes as well as materials for sewing; the profits will help her to send her kids back to school next year.
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.