Khursheed Arif Ali Group

Khursheed baji belongs to a family of farmers, so she spends most of her time taking care of her buffalo. She gets up early every morning and gets milk from her and then goes to the milk shop to sell the milk. She has successfully repaid her three loans from Asasah (a micro-finance institute in Pakistan). Now she is applying again for a loan to buy another buffalo for her milk-selling business.

She is the group leader for some more women from her locality. Shumaila baji wants a loan to buy wooden chairs to sell. Rifat baji wants a loan to buy bicycles for her bicycle-selling business. Hanifan baji and Sobia baji each want a loan to buy buffalos for their milk-selling businesses.

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