Ayesha has been a client of Asasah (microfinance institute in Pakistan and a partner of Kiva) for the last three years. With the loan profits, she has been able to purchase a color television and a fridge. Now they are applying for a loan again to purchase telephone calling cards in bulk for her husband’s PCO.
They hope to get a good profit this time too. They would like to purchase a motorbike for her husband and take the family on rides on weekends.
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