My name is Nasreen K., and I am the wife of Muhammad Arshad. I live with my family in a small town, Borewala, in Pakistan. I need a loan for my husband to repair his tractor. He uses his tractor to plough the fields. I plan to repair my house in the future, if our income increases. I mostly do my household chores, but whenever I get time I embroider clothes that I get on order from the women in my neighborhood. I have a few friends in my neighborhood who are my loan group members as well, let me introduce them to you: Safia W., who plans to use the loan for her son’s salon; Rafia B., who became divorced two years ago, and she runs a beauty salon to make her living and now needs a loan to improve her business; and Nasreen N., who will invest the loan in their used items trading business.
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.