Alia’s husband sells a local food called fruit chaat, which is made of fruits and spices. He is experienced in making it, and it is very popular among his customers. He makes a reasonably good income from his business.
Alia’s group has applied for an 80,000 PKR loan from KIVA’s partner Asasah. She will invest her portion of the loan in her husband’s business. With the money he will buy fruit and spices in larger quantities so as to be able to prepare more quality food and earn more profits by increasing his sales.
Alia is hopeful that this loan will help her husband to make a greater profit from his 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.
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Success!! The loan was 100% repaid