Jamila baji is the wife of U. and lives in Kot Radha Kishan, Pakistan. She is the mother of six children and runs a thread-making business. Her husband runs a power loom. She is applying for a loan to buy another power loom for her husband.
She is making this loan with four other people. Kosar baji wants a loan for her own power loom business. Naseem baji wants a loan for her business selling utensils. Farhat baji wants a loan to buy land. Sajida baji wants a loan to buy more supplies for her carpet-making business.
This is a group loan. The 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.