N. Sabina, “Jjaja Gonzaga” as she is referred to by her friends and family members, is the leader of the group in Mubende. She has had a business of making pancakes since 1943, when she started with 20 cents and now she is able to cater for her family, especially her grandchildren.
She says that she was introduced to her lending group by well-wishers who saw the burden ahead of her in caring for her family. She received her first loan to reinvest in her business and now she is doing well. She is also a small-scale farmer growing food mostly for home consumption, while before she had enough for sale. Sabina has been able construct rental houses by using her loans and savings and this is also helping her with her home welfare. She needs another loan to help with buying more flour and cooking oil for her pancake 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.