Farida is the group leader of Pana group. There are two members in this group and each of them needs a loan to expand her business. Farida wants to take out a loan for her husband who has a fruit cart. Faiz Khnum wants to take out a loan for her embroidery business. They want a loan of $600 for the term of ten months. They like this process because it can support one to expand and progress in business.
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.