Zubaida's husband operates a thread-making business. He has great marketing skills and has good business contacts in the market, to whom he supplies thread on demand.
Zubaida has applied for a loan from KIVA partner Asasah for her husband, who wants to buy a new thread-making machine. By purchasing a new machine, he will be able to make a larger quantity and better quality of thread and earn more profits. Her husband has been operating his business for many years, and Zubaida is confident that this loan will help his business succeed.
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