Rukhsana has applied for a loan from Kiva partner Asasah for her sewing business. With the loan investment, she will buy a new sewing machine that will help her finish the client orders in a shorter period of time and increase her profits. Her current sewing machine has become old and needs replacement. She is confident that a new sewing machine will help her make more income from her business.
Her husband is also a tailor and an embroidery expert. Rukhsana has given birth to three daughters. Only one of them is able to get an education. Rukhsana wants to send her remaining daughters to school and she is confident that she will be able to do that by improving her business and increasing her income.
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.