Aidah is a 25-year-old widow from Kitebero, a suburb in Mbarara municipality. She dropped out of school and got married when she was young. However,her husband, who was the sole provider, passed away. Aidah, thereafter, started up a food stall in the market and that is how she takes care of her family of three children. This business grew and helped her to sustain her family. Her business further progressed with the help of Ugafode microfinance loans and this motivated her to mobilize her colleagues in the market to form a development group called Kitebero Model Group. She has requested ugx.2,000,000/= to buy more food stuffs for her stall that will meet the demand her her clients. They are all a hard working lot.
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.