A very skillful lady, Sawran operates a business making embroidered dresses. She receives orders for dresses from her relatives and from the neighbors as well. She charges PKR 500 for each embroidered dress. She has been doing this work for the last six years. Her business provides most of the support for her family. She uses her income to pay for the utilities.
Her husband is a loader by profession. He loads different items on his donkey cart and delivers them to the required places to earn income. He has been doing this work for the past five years. Sawran is applying for a loan from Asasah. She will invest the capital in her husband’s business so he can purchase a new cart because the old cart has become rough and rotted, which makes it difficult for him to load items.
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.
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Success!! The loan was 100% repaid