Razia is also a member of Razia's Group which is asking Kiva’s partner Asasah for a group loan. (She is the woman in the photo who is holding an Asasah passbook.) She will use her portion of the loan to support her eldest son’s business making school bags. His stitched bags are popular among his clients, and he receives regular orders.
With the loan proceeds Razia’s son will buy thread and cloth to make better quality bags and so increase his sales and profits. Razia is confident that by purchasing raw material in bulk her son will be able to improve 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