Rozina is 40 years old and has given birth to four sons. Her eldest son operates a grocery store and the others are studying in a local school. Rozina supports her family by sewing clothes. She is an expert in her work and can sew designer and non-designer clothes easily. Due to her work, she receives a good number of orders every month from her community clients. She has applied for a loan from Kiva partner Asasah for the expansion of her son’s grocery store business. With the loan, he will buy groceries like sugar, spices, rice etc to be able to fulfill the client orders on time and to increase his profits. Rozina is expecting that her son’s business will improve and her family will be able to make their life better as a result of the loan investment.
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.