N. Harriet is the group leader of Tusuubira group in Lugazi. She is 44 years old and a single mother of three school-age children; she also cares for two other relatives. For 17 years, she has had a tailoring business making women and children’s wear as well as buying already made clothes to sell. For 12 years, Harriet has been getting loans from Pearl Microfinance and out of these loans, she has been able to maintain her business, make it grow and her daily income and savings have increased over the years. She again needs a loan to help with stocking more clothes for sale since most of them were sold off for the Easter season; she will also stock more materials for making her other clothes.
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.