Sarah N. is the chairperson of the Kyaterkera group Lugazi. She is 42 years old with a charcoal selling business; she has a workshop built with timber and iron sheets and stocks it with over 100 bags of charcoal each time she buys them from the charcoal burners. She has been in this business for a long time, winning her more customers every now and then as well as retaining the existing ones; the biggest advantage is that there is not too much competition in her area. She has a plan of including the sale of firewood to increase her daily income. She needs a loan to be able to buy more charcoal for sale.
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.