B. Peace is the leader of her lending group in Ntungamo. She is 50 years old and a widow with 6 children aged 21 – 13 of which 5 are in secondary school while 1 is in primary seven. Peace has a hotel business in Nyamafuru where she sells local food and soft drinks for 2 years and because her business is still small, she makes 10,000/= as profits a week. She has hope that once she can access more capital, she will be able to increase her profitability because her hygiene is good with less competition. She needs to expand her hotel so that it could make more profits that will take all her children through school to the University level so that they can secure their own jobs. She is a hard working lady who started this business from nothing after the death of her husband.
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.