K. Rashida is the chairperson of the Bugembe Katwe group in Jinja. She is a business woman who sells new clothes, mostly ladies’ and girls’ wear. Recently she has added children's clothing. This is her eighteenth loan with the group. She has benefited by being able to construct rental houses as well as to pay school fees for her children, one of whom is at the University. She buys her clothes from Kampala twice a week and always has a large stock of new clothes. Rashida needs a new loan to be able to buy more clothes for sale. (The credit officer for the group, Richard, is also in the photo.)
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.