Godfrey is a 32-year-old, married man with six children living in Kyenjojo, Uganda. He is a farmer and he mainly grows coffee. He has been in the sector for 10 years. He also grows maize and beans. With the income earned, Godfrey has been able to buy more land for farming and educate his children. He faces a problem of seasonal weather changes, like drought, which affects the coffee production. He has a personal goal of educating his children up to the university and a business goal of venturing into mechanized agriculture. He is a member of the above-mentioned group where each member guarantees the other in accessing the loan and that is why they are 10 members and yet only 9 need the loan. Godfrey needs the loan facility to pay workers who are digging his garden.
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.