Razia Ghulam Rasool's Group

Razia baji is the wife of Ghulam Rasool, and she has been living in the city of Chichawatni in Pakistan for the last 16 years. She is the mother of six children: five sons and one daughter. Her oldest son completed his studies through 12th standard (grade) and then went abroad to work in Saudi Arabia. Her husband is a driver, and he has been in this profession for the last 8 years. Razia baji is a housewife, and she takes care of her children. She has already successfully repaid two previous loans from Asasah (a microfinance institute of Pakistan): she bought a vehicle with the loan proceeds from the first loan, and she bought tires for that vehicle with proceeds from the second loan. Now, she is applying for a loan for her younger son; more specifically, her son works as a loader (i.e., he transports materials in a truck or van), and he is in need of this loan so that he can purchase another vehicle (a Mazda) for loading purposes.

She is joined in her loan group by the following individuals: (1) Zeba baji, who seeks a loan for her juice carton business; (2) Shamim baji, who requests a loan to buy fruit; (3) Farhat baji, who is in need of a loan for her bookshop; and (4) Manzooran baji, who asks for a loan in order to buy electric supplies for her electric shop.

This is a group loan. As such, the loan proceeds will be distributed among the group members, each of whom will invest in her own business. Further, the members mutually guarantee each other's loans; therefore, if one member does not repay her loan, the other members are responsible for the arrears.



About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults. Learn more

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