Razia, holding the Asasah passbook in the photo, has applied for a loan from KIVA partner Asasah for her embroidery business. With the loan, she will buy beads, embroidery frames, and clothing in bulk, which will allow her to offer better quality services to her clients and make more profits. She is very skillful and loves her work. Razia's husband works and supports her, while her five children do embroidery at home. She is a very confident lady and has a good number of clients who give her regular orders. She is very confident about the future growth and improvement of her business after investing the loan.
Razia wants to give her eldest daughter, who is 24 years old, in marriage, and she hopes that she will be able to provide a dowry with her increased 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.