Nasreen baji is the wife of M.Rafique and lives in Kot Radha Kishan, Pakistan. She is the mother of four sons and three daughters. For the last six years, her husband has made a living running a clothing-making business. Nasreen has successfully repaid one loan from Asasah (a microfinance institute in Pakistan), and is now applying for a new loan so her husband can buy more garments and expand his business.
Nasreen is applying for this loan with six other people. Shahida baji wants a loan for her gold business. Abida baji wants a loan to make additional garments to sell. Haleema baji wants to buy a thread-making machine. Tahira baji wants to buy supplies for her food stall. Umran baji wants to buy cloth to make handkerchiefs. Naseem baji wants to buy a machine to stitch borders on scarves and shirts.
This is a group loan. Funds will be distributed among the 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.