N. Fatuma is one of the executive members of Balyejusa group in Lugazi. She is a business woman with a tailoring business where she makes dresses, skirts, blouses as well as mending those that are already made. She has been getting loans for 4 years now and she is amazed by the change that has happened to her business. As a result of being able to make some weekly income of 80000 Ugshs, she has been able to buy another sewing machine totaling to two now, she has bought a bicycle that helps to fetch grass for her cow as well as owning more household items. She is married with 3 children, and also caring for 2 relatives with full responsibility for their welfare. She needs a loan to be able to buy more clothing materials for her tailoring business.
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.