Razia Abdul Sattar Group

Razia baji has an interest in stitching and embroidery. For her business, she takes orders to stitch two suits on order per week. She charges $3 to $4 for embroidering and $1 to $2 for stitching. This work helps her husband and the family to pay the household expenses; inflation is increasing day by day and it’s difficult for one person to mange the expenses.

She has successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy milk for her husband’s milk selling business.

She is joined in her loan group by a few more members. Hanifan baji wants a loan to buy medicines for her medical store. Sarwar baji and Aziz Fatima baji each want a loan to buy peanuts to resell. Shamim baji wants a loan to buy the contract of a bicycle stand so that her husband can run the stand and charge fares to people who want to rent the bicycles.

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