Running a retail shop in a village is not an easy thing, especially among your friends and relatives, because they would want goods on credit and this is a business setback. This situation is what has been affecting Hadijah, the chairperson of Zibula Atudde Women’s Group, and her 10-year-old shop in Bunyumya, her home village. She is 48 years old and married with 5 school-going children, as well as caring for 3 relatives’ children. She has been a member of her lending group for 10 years, and this has really helped her with business expansion and learning how to save. She needs a loan to help with the expansion of her shop by buying more goods that will attract more customers for more profits and savings.
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.
A portion of Zibula Atudde Lugazi Group's $3,350 loan helped a member hadijah has planned to use the loan for the expansion of her shop by buying more goods like sugar, salt, soap, and biscuits that will attract more customers for more profits and savings.