Sakina Abdul Hameed's Group

Sakina baji is the wife of Abdul Hamid, and she lives in the city of Chichawatni in Pakistan. She is the mother of eleven children: ten daughters and one son. Her oldest daughter is married. Her husband is a laborer: he is hired to carry or move items, for construction work, etc. She has already successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). In practice, Sakina baji takes care of other people’s land and she does house-related work. Now, she is applying for a loan for her husband so that he can buy a cart to lift heavy items.

She is joined in her loan group by the following individuals: (1) Shazia baji, who seeks a loan to expand her children's garment business; (2) Allah Rakhi baji, who requests a loan to buy masonry tools for her husband’s business; (3) Ameeran baji, who asks for a loan to buy a donkey cart; and (4) Razia baji, who wants a loan for her food business.

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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