Esther K., age 60, is the chairperson of the Namutamala lending group in Mpigi. Ten years ago she was one of the founding members of her group. She has operated a business since 1989, keeping animals (cows) at her home and poultry, for the last for 4 years. In total, she has 3 cows that provide her with milk for sale and 100 laying hens that very soon will be laying eggs. These hens are replacement of those that she had sold. She is requesting a loan to purchase more laying hens to expand her business. As a result of investing more in her business, Esther has been able to save money which has helped her with buying household items as well as making life comfortable for her orphaned grand children. Esther is a widow with 7 children. Most of her children have passed away and left her with the care of the grandchildren that she has to work so hard to provide for. She is grateful for the loans as she has been able to stock chicken feeds and medication for her animals. This would not have been possible without the loans. She is really a hardworking elderly lady that does farming on a very small scale mostly for food to feed her grandchildren.
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.