Bushra has applied for a loan from KIVA partner Asasah for her sewing business. She started her business a few years ago to financially support her husband who is a rickshaw driver, providing transport services to his passengers. With this loan, Bushra will buy a new sewing machine to replace her current machine that has become unreliable, making it difficult for her to meet order deadlines. By purchasing a new sewing machine, she will be able to finish orders on time and increase her profits.
Bushra is very efficient and is transferring her skills to her elder daughter by teaching her the art of sewing, enabling her to earn some income every month. Bushra’s other two daughters stay at home and help Bushra in her household tasks. Bushra’s eldest son is a painter and paints walls and buildings.
Note: In the photo, the lady holding a book entitled Asasah Passbook is Bushra.
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.