Grace A. is the leader of her lending group in Bushenyi. She is 41 years old and married with four children between the ages of 7 and 18, all of whom are in school. Grace has had a business of selling fruits and vegetables in the Bushenyi daily market for sixteen years. She started selling only the quantity that she grew from her own garden, but now she also buys from her fellow farmers, because she has the capital from her own savings and with the help of loans. As a result, she is able to make $15 a week in profits. Her dream is to start supplying her produce to companies, supermarkets and hotels in Bushenyi. This is Grace’s 18th loan with Pearl Microfinance and she is grateful for the achievements she has made through this partnership.
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.