Because of his commitment and availability Michael was chosen as the group leader of a trust bank group called ‘Ebeyeyie’ which literally means "it shall be well". He is the one in the middle in the group photograph. The other members of this group are petty traders, food vendors and/or farmers. In this group, members guarantee for one another as social collateral to access loans and thus experience peer pressure to repay the loan.
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.
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Success!! The loan was 100% repaid