To increases their family income, Hamidan makes embroidered dresses to order. She receives orders from the cloth shops and completes a dress in a day, making Pak Rs. 500 profit on it. They both use their income to pay for utilities and to save for a rainy day.
Hamidan is applying for a loan from Asasah to invest capital in her husband’s business so he can purchase, in bulk, sanitary supplies such as taps and water pipes and increase the profits of his business.
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