Joanita is a married woman aged 28 years with two children who all go to school. She is a resident of Bugolobi and a member of Lets Work Women’s Group located in Kiswa. She has a small restaurant where she earns her income. She has borrowed a loan of 400,000 UGX for the purpose of boosting her business in the form of buying foodstuffs and a few utensils. She will use a portion of it to pay the balance on the tuition for one of the children. Her future plan is to see her children graduate and be able to see them employed or doing private business. She is so grateful to the funders for the partnership and hopes the group members will do their part to uphold it. Three of the group members did not take the money this cycle but signed the waiver forms since they are hoping to take in the next cycle. Joanita is standing third position from the right. The fifth person with white shoes and belt is the Ugafode credit officer.
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.