Tasleem baji is the wife of M. A. K.. She lives in Multan, Pakistan. She owns a two-room brick house and has been living in it for the last 15 years. Tasleem baji is the mother of four children, one son and three daughters. Her son is in the 6th standard grade. Her elder daughter is in the 7th standard grade. Her husband makes decoratively embroidered dresses. He has been in this profession for the last 5 years. Tasleem baji successfully completed two loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy embroidery material (thread, needles, and clothes) for her husband's business.
She is joined in her loan group by a few more members. Sugran Mai baji wants a loan to buy a buffalo for her milk business. Shahnaz baji wants a loan to buy more fruit to resell. Shagufta baji wants a loan to buy oil for her power loom machine.
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.