Justus, with hand raised, is 27. The last four years have been mixed for his retail business, but this good-natured and assiduous father of four has shown his enterprising and unrelenting work ethic during this time. He began his business with savings from his farming business. Weekly Justus says his gross earnings total Ugandan shillings 140,000. He sells a variety of general merchandise such as maize flour, soap, beans, plastics, and bread. These commodities sell well because they are essential. His four years' experience in this trade has taught him a lot as regards the efficient running of a business, crisis management, and the proper management of finances. This is the first time Justus's group is accessing a loan from Pearl micro finance. Most, if not all, the group members are in business which means repaying this loan will not pause a problem. Justus is requesting this loan to purchase more retail commodities such as maize flour, rice, cooking oil, beans, sugar, and bread to sell in his store.
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.