She lives in a combined family system along with her brother. Her brother has a rent-a-bike business. He rents motorbikes to people and charges on an hourly basis. His business is going well but he wants to improve it further. Therefore, Razia has applied for a loan from Kiva partner Asasah for her brother who will buy another motorbike with the loan. This will help him provide his services to more people at a time and earn a better income. Her brother has been operating his business for the past five years and it is working well for him. Razia is hopeful that after the loan, it will increase his profits more.
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