Sajida, wife of M. Sarwar has the business of trading wheat. She has one son and one daughter. Their son is in kindergarten. Sajida and her husband are willing to educate their children because they think that through education they will be able to face every situation very independently. She successfully completed a loan from Asasah, a microfinance institution. She needs a loan to invest in her wheat business, so that they get a lot of profit because this is the wheat season.
She has been joined in her group by a few more members. Haleema B. needs a loan to start a fruit cart business. Bashiran B. wants a loan to make iron boxes. Maqboola B. wants to expand her cigarette shop. Naseem B. needs a loan to start a workshop.
This is a group loan. The loan funds will be distributed among the group members, each of whom will invest in her own business. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible.
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.