Justus is a second-time borrower in UGAFODE Microfinance Limited. His previous loan of UGX 500,000 was used for the purpose of repairing his fridge so that he could increase his sales in the shop. He runs a retail shop in the city outskirts, and he has borrowed a loan of UGX 1,000,000 to add more stock of soft drinks. Soft drinks are highly sought after, especially now that it is the dry season.
Justus is a married man with two kids, one of whom goes to school. He has started up a small saloon to increase his income and also be able to save more. This helps him to improve his current standard of living and save for the future. He is planning to buy a piece of land and build a house for his family, reducing his rent expenses so as to increase his savings. He is so grateful to the funders for the great job they do of providing loans to low-income earners.
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.