Naseem has applied for a loan from Kiva partner Asasah for her son’s embroidery business. With the loan investment, she will buy embroidery frame, beads, and thread in larger quantities and of more variety, which will allow her to provide better quality embroidered clothes to her clients and increase her sales and profits.
Naseem is a seamstress and sews clothes for her neighboring clients. She is very skillful in her work and receives regular orders every month.
She is a mother of 4 other children. None of them could complete their education due to financial constraints. She is hopeful that her son will successfully be able to improve his business after the loan investment.
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.