Sakina baji (baji is the Urdu term of respect meaning "elder sister") is the wife of S. M.; they have been living in Kasur, Pakistan for the last 20 years. She is the mother of eight children: four sons and four daughters. Her eldest son, 20 years old, drives an auto-rickshaw. The remaining children are enrolled in a local school near the family's neighborhood. Her husband is a driver who also drives a rented auto-rickshaw. Sakina baji successfully completed her loans from Asasah (a microfinance institute of Pakistan) and now is applying for a loan to buy an auto-rickshaw for her husband.
She is joined in her loan group by a few more members. Shahnaz baji wants a loan to buy fruit for her fruit business. Parveen baji wants a loan to repair an auto-rickshaw. Rashida baji also wants a loan to repair an auto-rickshaw.
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.
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Success!! The loan was 100% repaid