Allah Rakhi M.rafiq Group

Allah Rakhi baji is a widow of M. Rafiq and lives in Bund Road, a small town near Lahore, Pakistan. She owns a two-room brick house and has been living in it for the last 22 years. She is the mother of three sons. Her eldest son has a food business, the son next to him has a fruit business, and her youngest son runs a barber saloon. Allah Rakhi baji is a housewife and prefers to do household work and take care of her family. She ha successfully repaid three loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy more seasonal fruit for her son's fruit selling business.

This is a group loan. Allah Rakhi baji is joined by a few more members. Bashrian baji wants a loan to buy paper rim to resell. Kosar baji, Safia baji, and Shahnaz baji each want a loan to buy more garments to resell. 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