Salma is a very skillful lady. She operates an embroidery business. She collects order from clothes shops and earns a profit after completing each embroidered dress. She uses her income to pay for utilities, but she also saves part of her income for her elder son's marriage, which will be held in December this year.
Salma has successfully repaid her first loan to Kiva partner, Asasah (a microfinance institution of Pakistan). Now she is requesting another loan for her husband to purchase items for his business such as milk, sugar, tea cups etc. in order to generate a good profit.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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Success!! The loan was 100% repaid