Hadija is a resident of Kakoba division in Mbarara municipality. She is 36 years old. She dropped out of school and got married at the age of 18. At the age of 25 with three children, she divorced because her husband was mistreating her. She started up the small business of selling secondhand clothes in order to take care of her children. This business has grown and helped her to sustain her family as well as her extended family. She has been able to pay tuition for her young sisters. Her previous loan of UGX 800,000 from Ugafode has helped her to prosper and this has motivated her to mobilize other women to form a development group called Kakoba Okwegata group. This group is requesting for a total loan of UGX 6,300,000 to help them buy more stock for their businesses. Three of the group members did not get loans in this cycle because they got loans earlier than the rest.
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.