M. Samuel is a member of his lending group in Jinja. He is a married man with six children, all still in school as he also cares for the three orphans of his late brothers. He has a retail shop in the Ivunamba trading centre and he is grateful that all the loans he has been taking have been helpful in his business and with his family at large since by stocking his shop, he has been able to make profits, hence being able to pay school fees for his children and attending to their healthcare. Samuel is also a farmer and from this, he is able to save money to buy food as well as being able to sell the excess. He now needs another loan to be able to buy more stock for his shop like sugar, books, beans, maize seeds, and other things.
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.