Salama M., in her mid 30’s, is the chairperson of Polota Kakira development association in Kakira. She is a hard working business lady with a salon that she has owned since 2000. She has rented the same premises since then. In the salon, she does all sorts of hairstyles like braiding, weaving, retouch, treatments and plus so much more. She uses mostly materials and chemicals that she buys from the moving beauty product trucks.This means that she does not have to spend money on transport. In addition to the salon, Salama also sells cold soft drinks and beers from a fridge in her salon selling to mostly her salon customers, neighbors and passers by. She sells soda, mineral water, juice and beers as another way of increasing her income. In the salon, Salama employs 3 girls who help to attend to the customers. She also has two more girls who are learning hairstyling from her. For each to learn, they pay about $120 for the six months course. Salama is grateful for her loans for the four years she has been in this association and this time round, she needs a loan to help her buy more weaves, braids and chemicals for her salon since most of them were used up during the festive season.
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.