Shamim has applied for a loan from Kiva partner Asasah for her husband’s tandoor (a kind of stove made with mud, burning wood, used to make bread). His tandoor is located in the community and he gets good income on a regular basis. He sells each flatbread for Pak rupees 5 which is almost the same everywhere. His bread quality is very good and he uses good quality flour for making bread.
With the loan, he will buy flour and wood to be able to fill the customers’ orders on time and generate more income.
Shamim herself is a housewife and does her household responsibilities, staying at home. She is hopeful that the loan investment will prove a productive one for him.
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.