Nasreen is a housewife and remains at her home to carry out her household responsibilities. She has a 26-year-old daughter who helps her in her daily tasks. Her husband has a business of selling spare parts. He also provides spare parts repair services to his clients. He has great technical skills and knows his industry very well.
Nasreen has applied for a loan from Kiva partner Asasah for further expansion of her husband’s business. With the loan, he will buy spare parts and tools in larger quantity that will allow him to improve his sales and income. Nasreen has a lot of confidence in her husband that he will successfully be able to improve his business after investing the loan.
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.