B. Lucas is the leader of his lending group in Ibanda. He is a determined and hardworking man who owns a retail shop and an alcohol store in Nyarukika trading centre. He has done this for 15 years. He is 42 years old and married with 6 children, most of whom are in secondary school; he takes care of 2 dependants. Due to Lucas’ good service, he is able to make a sizable profit, which he uses to take care of his family and to acquire other family properties. Lucas would like to continue with his business; indeed, he wants to expand by offering more products and thus increasing income. He is seeking a loan to help restock his business with more products such as beer and wine, in order to make more of a profit. He is really grateful for his loans.
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.