Most successful businesses in Uganda are built out of unwavering diligence, persistence and a sheer determination to succeed. Many people see running a business as a means to an end in their quest to extricate themselves out of poverty. 34-year-old enterprising Sarah is one such person. This happily married mother of 4 has been plying her charcoal sales business in Mityana for the past 2 years. She ekes out further profits from selling bananas. She also has a farm. Before she ventured into this business she was engaged in a tailoring business. She says her weekly sales profits are 30,000 shillings. With this loan, Sarah says she is going to purchase more bags of charcoal to resell.
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.