Razia baji is the wife of M. A. and lives in a small city named Chichawatni, Pakistan. She is the mother of four daughters. Her elder daughter is in 10th standard. The next eldest daughter is in 8th standard. The younger to them is in 5th standard. Her last daughter is in kindergarten. Her husband runs a grocery shop and has 8 years of experience. Razia baji is a housewife and prefers to do household work and take care of her daughters. She is applying for a loan to buy groceries for her husband's grocery store. She and her husband wish to give their daughters a better future and good education.
She is joined in her loan group by a few more members. Razia baji wants a loan to buy groceries for her grocery shop. Musarat baji wants a loan to buy edible items (chips, nimko) to resell. Shahida baji wants a loan to buy shoes for her shoe selling business. Zubaida baji wants a loan to buy wooden baskets 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.