I have lived all of my life in a small city called Chichawatni in Pakistan. I am a widow and a mother of two kids. I raise goats to supplement my work as a day laborer. When these goats reach a reasonable age I sell them at a decent price. I want to buy a few additional goats for my business.
There are four other women in my loan group: Nazira B., who is borrowing for her grocery store; Walan B., who will invest her share of the loan to buy a machine for their business; Manzoora B., who embroiders clothes; and Parween A., who wants to buy a donkey cart. These women are very cooperative and will repay your loan on time in a responsible manner.
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.