Sobia A. is the group leader of a small group of five women. She married a couple of years ago and has one daughter who is one and a half years old. Sobia’s husband works at a local factory and earns a meager income. He feels the need to start his own business and therefore needs a loan. He will use the loan to start an auto spare parts shop. He is very hopeful and wants to increase his income to give a better future to his daughter. Sobia’s group members are: Venice B. (who wants to buy iron for her business), Azra B. (who will buy a dairy cow for her milk business), Sughran B. (who wants to buy spare parts) and Rubina S. (who will buy construction supplies).
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.