Aalia has applied for a loan from KIVA partner Asasah for further improvement of her son’s salon business. He will use the loan investment to buy scissors, hair dressing tools and cosmetics to improve his business. He will also increase the number of chairs at his salon to provide better seating arrangements for his clients. He has been operating his business for many years and Aalia is confident that he will be able to earn more profits from his business by investing the loan.
Aalia is a sewing expert and works for her neighboring clients. Her husband is a rickshaw driver, providing transport services to his passengers. Aalia has 3 other children who are studying in a nearby school. She is confident that she will continue providing better quality education to her children by improving her eldest son's business.
More information about this loan
Asasah offers products that are customized for its Muslim clients. This Murabaha loan is structured as an interest free loan. Asasah purchases goods for its borrower and charges them a markup or fee. For more information on Islamic microfinance, please click here.
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.