Ramzan lives in Borewala — a small city in Pakistan. She is fifty-years of age, but still very active. She sews clothes for her neighborhood clients to make an income for her family. She is very good at her art and has been doing this work for the last fifteen years. Her experience leads her customers to give her orders on a regular basis. She uses her income to pay utilities expenses. Her husband makes marble floors; he sets the marble into the floor and then polishes it with a big polishing machine to make the marble smooth and bright. His son works with him. They used to rent the machine for their work since they couldn't afford to buy one. Ramzan's family is too poor to afford to educate her son so he started helping his father in his business at a very early age. Ramzan has applied for a loan from Asasah so that, together with the amount they have saved, her husband will be able to buy the polisher.
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.