Grace is 48 years old. She is married and has given birth to four children, who are all in school. She works hard to support her husband to provide for the family. Grace is the leader of a trust bank group called Alpha. The members of the group are all hardworking. They are engaged in commercial activities such as food vending, provision selling, clothes selling, etc. Some of them hawk to sell their products while others trek to nearby communities to sell on their market days. They procure their stocks from Kumasi and nearby towns. They have acquired a great deal of experience over the years and they desire to expand their businesses, hence the need for the loan to buy goods in bulk to realize this dream. The group leader, Grace, is seated in the photograph.
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.