Jennifer is a 37-year-old, married woman with four children living in Kyenjojo, Uganda. She operates a drug shop and has been in this business for 10 years. She began the business with her own savings of 150,000 shillings and now her stock is worth 500,000 shillings. She has a challenge of customers not paying on time yet she has inadequate capital to purchase drugs. Her personal goal is building a permanent house for residence as she is currently living under a mud-wattled dwelling. Her business goal is expanding into new markets and owning a pharmacy. Jennifer intends to use the loan to buy drugs to sell. She is a member of the above-mentioned group where each member guarantees the other in accessing a loan and that is why they are 16 people in the photo even if 15 took the loan.
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.