Madina T. has a small home-restaurant business. Madina started her business last year after her husband died. She has four children that she is looking after. The two who are at home helped her start her restaurant and the others who are in school helped over the holidays when they were at home. Her restaurant has enjoyed great success so far because she sells her food out of her house and many people in her community know her very well, so she attracts many customers. She is requesting a loan to stock some supplies for her restaurant. She will buy things like potatoes, flour, sugar, salt, and other things she can get in bulk. Madina hopes that someday she will be able to build a standalone restaurant.
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.