Jessica M. is the chairperson of the Waina Group in Jinja. She is married with eight children, three of whom are still in school. Jessica has a tailoring business where she makes and mends clothes especially for women and children, not men. The reason for this is that men never believe that a woman can ever make their clothes right. She has been in the business for over ten years and had never received a loan elsewhere until two years ago when she joined Pearl Microfinance. Jessica is grateful that in such a short time, she has been able to buy another sewing machine, making it three, with one used for training young girls how to sew, one for her business, and another which she uses at home. Jessica needs a loan to buy clothing materials and other accessories like threads and needles for her business.
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.