Shamim M. Razaq is the wife of M. Razaq and lives in the Walton area of Lahore City, Pakistan. She has been living in this area for the last five years. She is the mother of seven children: five daughters and two sons. Her eldest daughter is married. Three of her other daughters are in school, in the 9th, 7th, and 6th standard respectively. Both of her sons are in the 10th standard at school. Her husband is a driver by profession. Shamim baji used to work in a school, but her health and the hard working conditions kept her from continuing this job. Instead, she is requesting a loan to start a new vegetable selling business.
She is joined in her loan group by a few more members. Sharifan H. M. wants a loan to buy beams for her shuttering business. Suraiya I. and Najma A. K. each want a loan to buy groceries for their grocery shops.
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.