Hamidan baji is the wife of M. and they live in a city named Kasur, Pakistan. They have lived in this city for the last 16 years. She is the mother of two children: one daughter and one son. Both of her kids are enrolled in a local school near her neighborhood. Hamidan baji’s husband is a construction worker. She sells bangles in different areas, and also is efficient in domestic household work. She also takes care of her children. She successfully completed two loans from Asasah (a microfinance institute of Pakistan), and now she is applying for a loan to expand her bangle business.
She is joined in her loan group by a few more members. Nusrat baji wants a loan for her wood business. Rani baji wants a loan for her shoe business.
This is a group loan, and 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.