Rauben is a forty-six-year-old married man with five children living in Kamwenge, Uganda. He has a personal goal of educating his children to attain degrees for their minimum qualification. He has been a farmer for the last three years after starting with a capital of 150,000 shillings and now has over 2,000,000 shillings. His main hardship is price fluctuation and inflation; however, he has a vision of buying land to grow crops. Rauben needs a loan to buy maize for resale. He is a member of the above mentioned group where each member guarantees the other in accessing a loan. Some of the members did not take the loan but had to comply with the group policy.
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.