B. Sarah is the leader of Gwokale group in Jinja. She is a business lady who runs a retail shop as her business, as well as keeping goats and sheep for a living. This is the 5th loan Sarah is taking from Pearl Microfinance, and she says the previous loans have helped her to expand her shop, increase the number of animals that she keeps, and have also enabled her to buy a plot of land on which she plans to build houses to rent. Sarah needs a loan to help her buy more of her shop products. In her shop she has sugar, muffins, soap, cooking oil and many other things for sale.
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.