Fouzia has applied for a loan from Kiva partner Asasah for her husband who is a rickshaw driver. His rickshaw currently runs on petrol which is very expensive, so he wants to install a CNG kit (set of components and tools that are installed in a vehicle so it can operate using both gasoline and compressed natural gas or CNG) on his rickshaw that will minimize his expenses and increase his rickshaw’s mileage.
He has been providing transport services to passengers for the past 10 years and Fouzia is very confident that by utilizing the loan he will be able to run his business better and increase his profits.
Fouzia is 33 years old and she has no children yet, so she spends most of her time doing decorative embroidery which earns her good profits every month. She learned this skill from her mother.
Note: “In the photo, the lady raising her hand is Fouzia”.
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.