Shahida has applied for a loan from Kiva partner Asasah for her husband who is an iron-smith and makes iron boxes on order.
With the loan investment he will buy iron and other tools to make better quality iron boxes and increase his profits.
He has been operating his business for many years and his boxes have high demand in the city due to their quality and durability.
Shahida is confident that her husband will successfully be able to improve his income 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.