Shakila bibi is a 24-years-old lady who owns and operates a sewing business at her home. She sews clothes for her neighboring clients and relatives and generates income for the family.
Her family consists of four more members, including three daughters and a husband. Her daughters are very young and stay at home. Her husband is a very skilled person, involved in making iron boxes which are used to keep things like bed-sheets, clothes, etc.
He has been doing this business for many years. In his years of experience, he has obtained a good reputation among his customers for his good work. He receives good orders from them and earns good income after finishing the orders on time.
Shakila has requested for a loan from Kiva partner Asasah for her husband’s business. He will use the loan to buy iron sheets in bulk and other material for preparing the iron boxes.
Shakila is very sure about her husband’s business success after this loan investment.
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.