Kalsoom Talib Masih's Group

Kalsoom baji has a decorative embroidery business. She bears all the expenses of making dresses and sells them in a big market. She has been in this profession for the last 5 years. She successfully completed her two loans from Asasah (a microfinance institute of Pakistan). She is running out of stock now. Therefore, she is applying for a loan to buy material (cloth and colored thread) to expand the business.

She is joined in her loan group by a few more members. Parveen baji and Khursheed baji each want a loan to buy cloth for their boutiques. Shakeela baji wants a loan to buy scrap (plastic bottles and paper) for her scrap business. Martha baji wants a loan to buy seasonal vegetables to resell.

This is a group loan. The loan funds will be distributed among the group members, each of whom will invest in her own business. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible.



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