T. Alice is the leader of her lending group in Ibanda. She is 38 years old and the mother of five children in school and she takes care of two dependents. Alice has been in the tailoring business for nine years. It is located in Mbaba trading centre and at the moment, she is able to make some profits. The way her business operates is that customers bring her clothing materials with their own designs and she charges for the services. For some, she sells the clothing materials to them plus the sewing, hence making twice the income. Alice needs a loan to be able to buy more clothing materials for resale plus to buy threads and needles for quick services.
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.