Saima has applied for a loan from Kiva partner Asasah for her husband’s sales business. Her husband is a professional salesman and particularly deals with cosmetics. He purchases cosmetics wholesale and sells to different cosmetics shop-owners at a profit. He has been in this business for over ten years. With the loan, he will purchase cosmetics and increase his sales.
Saima herself operates her sewing business. She has no children, so she keeps herself busy by doing sewing and household activities.
She is very hopeful that her husband’s profit will be double in size by investing the loan money into his business.
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.