Rizwana baji is the wife of M. and has lived in the city of Kasur, Pakistan for the past fifteen years. She has a two room brick house and is the mother of four children: two sons and two daughters. All of her children are enrolled in a local school. Rizwana baji is a housewife and prefers to run her household. Her husband is a land contractor and she is applying for the loan on his behalf.
She has been joined in her loan group by four other women, each with her own business. Jhagan baji wants the loan for her fruit business. Suraiya baji will use the loan for her corner drink enterprise. Shahnaz baji will expand her sweetmeat business and Nasreen baji will improve her vegetable business.
This is a group loan. The loan funds will be distributed among the group members and each will invest in her own business. The members mutually guarantee one another's loans and 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.