Alice K. is the chairperson of Samuka group in Lugazi. She is 39 years of age and married with 4 children. Her retail shop is located right at her home and she is lucky that she does not have to spend money on rent. In her shop she sells cereals, bread, sugar, tea leaves, salt, soap, flour and many more items. This being the rainy season and the time for going back to school, cereals and stationery are selling like hot cakes. She needs a loan to be able to buy a sack of beans, maize, books, pens, and pencils for her shop.
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.