Naziran baji is a wife of A. A. and lives in a small city named Kasur, Pakistan. Kasur is famous for its sweetmeat and shoes. She has been living with her family in this city for the last 45 years. Naziran baji is a mother of two daughters. Her family has a decorative embroidery business. Naziran baji and her daughters make embroidered dresses, and her husband helps them by selling those dresses in a big market. She is out of stock now; because of that, she is losing her customers. She is applying for a loan to buy material (thread, cloth) to fulfill the orders of her customers.
She is joined in her loan group by a few more members. Yasmeen baji and Naziran baji each want a loan to buy a power loom machine. Tasleem baji wants a loan to buy a lathe machine. Khadija baji wants a loan to buy thread to resell.
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.