Rukhsana baji is a wife of M. F. and has been living in a city named Arifwala, Pakistan. Rukhsana baji got education up to the 8th standard. She owns a two-room brick house. She is the mother of two daughters. Both are enrolled in a local school in her neighborhood. Rukhsana baji is a housewife and prefers to do domestic work and take care of her daughters. Her husband is a fruit seller and has been in this profession for the last 8 years. Rukhsana baji successfully completed her two loans from Asasah (a microfinance institute of Pakistan). Now she is requesting a loan to buy more fruits for her husband's business.
She is joined in her loan group by 4 other members. Chaman baji requests a loan to buy cosmetics to resell. Shahnaz baji requests a loan to buy an auto-rickshaw (local three-wheel vehicle). Asma baji requests a loan to buy fruits to resell. Shamim baji requests a loan to buy more materials for her grocery shop.
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.