Shagufta baji is the wife of A. G. and lives in Lahore, Pakistan. Lahore is famous for its historical places. She has been living in this city for the last 25 years. She completed her education through the 8th standard. She is the mother of six children: two sons and four daughters. Her elder son helps his father in his business. Her younger son is not yet of school-going age. Her eldest daughter is in the 8th standard in school. The next younger is in the 7th standard.
Shagufta baji's husband has a fruit-selling business. He has been in this business for the last 10 years. Shagufta baji successfully repaid her first loan from Asasah (a microfinance institute in Pakistan). Now she is applying for a loan to buy more seasonal fruits to expand her husband's fruit business.
She is joined in her loan group by three other members. Nasreen baji wants a loan to buy electric supplies (wires, tube lights and switch boards) for her husband's electric shop. Jamila baji and Shahida baji want loans to buy more cloth 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.