N. Edisa has a stall selling cabbages, tomatoes, onions, carrots and spices. She lives in Kisoga, Uganda, and she has been a member of her 13-member group, Kyosiga, since its inception. She is a widow with 5 children and she pays their school fees single-handedly with the help of loans. Her eldest child is 14 years and the youngest is 1 year. She buys her goods from farmers in the villages and she sells from her stall. With her portion of the loan, she intends to buy more cabbages, pineapples, carrots, onions, and tomatoes for sale. With the savings from previous loans, Edisa has bought goats that are kept at her home and next on the list is to buy a cow that will give her milk.
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.