Janeth K. has owned a small food vendor store in the Ipagala neighborhood of Dodoma for two years. Janeth is married with two children, ages 13 and 15. Janeth works every day at her business for six hours and earns an average monthly profit of $250 dollars.
Janeth is requesting a loan from BRAC Tanzania to buy more food items for her business. Janeth is hoping that through this loan her profit will increase and she will be able to grow her business and improve her home. Janeth will be sharing this loan with her fellow group members, Anna, Edda, and Sophia: all of whom have their own small businesses in Dodoma.
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.