Harriet N. is the chairperson of the Sikyoomu women’s group in Katosi, Lugazi. She is 38 years old and divorced. She lives with her three children in Katosi. Harriet has a retail shop that she has owned for 10 years. When she restocks her shop, she buys from the wholesale shops in Katosi so she does not have to incur more transportation costs. However, when it’s time to pay school fees, she is short on money to restock her business. She is the only bread winner at home, so she is grateful for the loans that allow her to restock her shop to a state where she can make enough profit to provide for herself and her children as well as to repay her loans on time.
She will share this loan with her group members.
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.