I have lived all my life in the mid-size industrial city of Faisalabad, Pakistan. I am married and a mother of four: two boys and two girls. All of my kids attend school except the youngest. I want all of my kids to finish school and find decent jobs for themselves. My husband wants to buy a new rickshaw, and therefore we need a loan. There are three other women who are also in need of loans. Samina B. requires a loan to buy a stock of various items for her son’s grocery store. Nasreen B. will buy an additional dairy cow with her share of loan. Abida B. needs this loan to buy a sewing machine for her sewing business. These women have been together for many years and play an important role in bringing in incomes for their families.
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.