Currently, Sajida operates a business sewing clothes while her husband is a painter. They have been operating their businesses for over fifteen years, and have steadily expanded them. Her husband, F. H., paints windows and doors and Sajida sews clothes for her neighbors. Their businesses are well known to their customers. With the profit, they purchased a color television and a fridge.
Sajida has been a client of Asasah (a micro-finance institute in Pakistan) for the last two years. Now she is applying for a loan for the third time to start a business selling paint. She and her husband have the expectation that the new business will give them good earnings which will help them to provide a better lifestyle to their son.
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