Annet is a used clothes saleswoman. She specializes in women’s skirts. Each week she travels to Kampala and, one by one, she chooses skirts to sell in her shop. She can buy a skirt at about 2,000 USH and she can resell it at about 3,500 USH. Usually she sells her skirts at the local market where she pays 500 USH rent per day. Annet has been in this business for about 10 years now. She works alone at her location, but her husband has a different stall at the market. The work that she and her husband do, supports their four children. Since their children range from ages 17 to 5, they are all currently in school. This means there is a heavy burden for the parents to carry. Annet says that although she could still be in the skirt-selling business without loans, the loans allow her to reduce her expenses. When she uses loans she is able to buy more skirts when she goes to Kampala. This gives her more selection and reduces transport costs. In this loan cycle, Annet is requesting a loan of 300,000 to purchase a large stock of skirts.
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.