Wilson N. is a proud member of the Kiwamirembe Women’s group and has a retail shop that he has been running with the help of loans. His first loan was used to buy more products for his shop. As a result, he has been able to take care of his family’s needs and to pay the children’s school fees. He has also started up a fresh fruits and vegetables business for his wife, and his dream is to open up another shop for his wife to manage. He is very grateful for the loans because his well-being depends on them.
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.