Allah Rakhi lives in Pakpattan, which is a small city of Punjab Pakistan famous for its dairy industry. She is 32 years old and married to M. I., who operates a business of selling bread. Allah Rakhi is a housewife. She has applied for a loan from Kiva partner Asasah for her brother-in-law, who is a driver by profession and drives a rickshaw. He provides transport services to his passengers, including school children. He will use the loan to repair his rickshaw because its engine is not working well. Allah Rakhi is hopeful that through this investment her brother-in-law’s rickshaw will become fully repaired and allow him to work for longer hours. She is a regular loan user of Asasah; this is her third loan application. In previous loan years, she has maintained a good credit behavior and never missed any meetings.
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.