Zuhran baji is the wife of M. and lives in the small city of Kasur, Pakistan. She lives in a one room house. She is the mother of four sons and two daughters. Zuhran's elder son is a medical worker in a clinic near her community. Her next eldest son and her daughters make decorative embroidered dresses. Her younger sons are enrolled in a local school in her neighborhood. Zuhran makes embroidered dresses and takes care of her children. Her husband is a daily wage laborer. She has successfully repaid her two loans from Asasah (a Pakistan microfinance institute ). Now she is applying for a loan to buy embroidery material (thread, cloth) to enhance her embroidery business.
Zuhran is joined in her loan group by four other members. Asia baji wants a loan to buy thread to resell. Hamidan baji wants a loan to buy material (lentils, rice and cooking oil) for her grocery shop. Sharifan baji wants a loan to buy thread to resell. Naseem baji wants a loan to buy electric supplies (switch boards and switches) for her electronic 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.