Khamis runs a restaurant that has been in operation for eight years and employs three people. Khamis’ restaurant sells local foods such as posho, matoke, rice, beans, fish and various types of meat. Posho is a starchy product made from corn flour and water. Matoke is made from unripe bananas that are steamed wrapped in banana leaves. Both are staples in the Ugandan diet.
Khamis provides for her four children, ages 15, 13, 4, and 3 months. She is requesting a loan in order to buy more foodstuffs for her restaurant. She has already bought the necessary equipment like tables, chairs, bowls and utensils, so she is now able to restock her food storage with her loans. She will now buy things like flour, beans, salt, sugar and other items that can be bought in large quantities.
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.