Auto-rickshaw (motorbike Taxi) Group

Swallehah baji is the wife of Noshair Ali and lives in a small city named Pakpattan, Pakistan. Pakpattan city is famous for its historical places. She owes a two-room mud house and has been living in it for the last 20 years. She is the mother of two sons and both are drivers by profession. Her husband is a security guard and also drives a an auto-rickshaw, a local three-wheeled vehicle, when he gets free from the job. Swallehah baji is a housewife and prefers to do household work and take care of her family. She successfully completed her two loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to repair an auto-rickshaw.

She is joined in her loan group by a few more members. Zulaikhan baji wants a loan to buy milk and curd for her milk shop. Zubaida baji wants a loan to buy leather for shoemaking. Azra baji wants a loan to buy fertilizer to resell. Naziran baji wants a loan to buy sugarcane to sell sugarcane syrup.

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

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