M. Joyce, 50, is the chairperson of Kyosiga Women’s group in Kayunga, Uganda. She is married with 3 grown up children and cares for 8 grandchildren at home. She has a farming business, supplying fresh beans, potatoes, and cassava to schools. Payments for her produce are usually made each week. She also sells ladies clothes, mostly underwear, to offices, hospitals, schools, and private homes as a side business. Over the years, she has been able to build a trusted customer base and in most cases she now just supplies her customers directly. Joyce needs her portion of this group loan to buy more clothes for sale and seeds for cultivation.
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.