Nawab John Mohammad Group

Nawab baji is the mother of two sons. Her elder son runs a small restaurant in the food market. His brother is 15 years old and doesn’t do anything. Nawab baji is an older lady so she keeps herself busy with household work. She successfully repaid her first loan from Asasah (a micro-finance institute in Pakistan). Now she is applying again for a loan to buy material (lentils, cooking oil and spices) for her elder son’s food business.

She is the group leader for some more women from her locality. Hanifan baji and Ayesha baji each want a loan to buy material (wood and furniture polish) for their furniture-making business. Nasreen baji wants a loan to buy groceries for her grocery shop. Mukhtaran baji wants a loan to buy vegetables to sell. Shamim Akhtar baji wants a loan to buy cigarettes to sell.

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