A very talented lady, Rukhsana operates a business sewing clothes. She sews clothes by receiving orders from her neighbors. By seeing her steadily progress, her relatives have started giving her orders, too. Now she charges them between 100 and 150 PKR for each dress. Her income has become the major source for her family because her husband’s income is insufficient to meet their financial expenses.
Rukhsana is applying for a loan for the third time from Asasah. She will invest the capital in her business so she can purchase an electric sewing machine and sew more clothes in a day and increases her income.
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