Jane, 40 years old, is a buoyant, good-natured and affable lady. The mother of four, she operates a seven-year-old tailoring business in Kampala. Jane says that 7 years in this business have broadened her understanding of running a business, consolidating its gains, doing proper planning to ensure growth, and handling the many challenges which crop up in its operation. She sews and sells all types of clothes but has realised that school uniforms are always in high demand and she takes orders from many schools to make their school uniforms. With schools mushrooming around Kampala, Jane anticipates getting even more clients. Jane got her tailoring skills from an apprentice tailoring school. On the side, she runs a rental business. Monthly, this business generates profits totaling shillings 120,000. This loan she says is to help her purchase more and better clothing fabric to make more clothes to sell.
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.