M. Ben is the leader of his group in Lugazi. He is a married man with 8 children aged between 23 – 9 years all in school with the first still at the University as he takes care of his other siblings. Ben is a fisherman in Kiyindi for 9 years selling all his catch for an income. At first, before this business, he was a salary earner employed by a fishing company and the little capital he had enabled him buy a boat and fishing net in addition to the loans. Now he has more than doubled his earnings and he is proud of his achievements since he employs more than 7 people. He wants to become the supplier of boat engines because they earn more as well as continue educating his children for a decent future. He needs a loan to help recapitalize his business plus paying school fees for his children.
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.