Nasira Quasim is 42 years old, and her husband is 50 years old. She resides in a two room brick house in the city of Kasur, Pakistan. Nasira make decorative embroidery and sells flour for a living. She has applied for a loan of $1,200 in order to expand her decorative embroidery business. She has been joined by several other entrepreneurs to form a loan group: Violet wants a loan for her paint business; Hamidan wants a loan for her shuttering business; Naziran wants loan for her cycles business; and Shaheen wants a loan for her animal food business. The loan funds will be distributed among the group members, each of whom will invest in their own businesses. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible and will make up the difference.
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.