Saira B. M. is the widow of B. M. and lives in the Walton area of Lahore City, Pakistan. Saira has been living here for the last twelve years and has been married for the last 35 years. She is the mother of four children: two boys and two girls. Her eldest son and daughter are married. Her youngest son is a mechanic and works in a workshop. Her youngest daughter completed her 12th standard and is ready to take college admissions. Her eldest son has a workshop where he sells spare parts. Saira B. M. is a housewife and does the household work to take care of her family. She successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a second loan to buy spare parts for her son's workshop.
She is joined in her loan group by a few more members: Samia P. wants a loan to buy material (beads, cloth, sketches) to make decoratively embroidered dresses. Kosar M. Shahbaz wants a loan to buy clothing to resell. Bilquis G. R. wants a loan to buy material (beams) for her shuttering business. Elizabeth S. M. wants a loan to buy spare vehicle parts.
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.