Rubina baji is the wife of M. R.. (Baji is an Urdu term meaning 'eldest sister'.) She is a mother of two sons, ages four and seven. Rubina baji is a housewife and her husband is a salesman who sells ready-made T-shirts. She is applying for a loan a loan for her husband who would like to sew children's garments. He needs cloth and a sewing machine to expand into this business venture.
Rubina has two other women in her group. Anwar baji wants a loan to buy animal food and Mumtaz baji would like to use the money to buy school furniture.
The loan will be distributed among the group members, each of whom will invest in her 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.