M. Grace is the leader of Byantuuyo group in Jinja. She is a hard working lady with a hotel/restaurant/bar business that she has been running for over five years and the same premise. She prepares breakfast, lunch and supper and in the evenings, people gather and have a cold beer just to relax from a hard day’s work.
From her businesses, she has been able to pay school fees for her five children, feed them as well as save money. She again needs a loan to be able to buy more food stuffs and drinks for her restaurant and bar.
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.