50 year old Alice, a happily married mother of 3, has been engaged in a stone quarry business for the past 18 years in Mukono. She says she began this business under the auspices of her husband. Stone quarrying is a business which involves a lot of elbow grease. For that reason, Alice employs sturdy and dynamic young men to do most of the work. She lays great store upon hard work and this philosophy has trickled down to her workers. She says this business generates profits totaling up to 180,000 shillings monthly. The purpose of this loan, she says, is to help her purchase more stones for usage at her quarry. Client demand has increased and the purchase of more stones will enable her to meet their demands.
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.