Rukhsana baji is the wife of L. A. and lives in a historical place named Yadgar, in the city of Lahore, Pakistan. Rukhsana baji owns a two-room brick house, and has lived there for the last 27 years. She is the mother of seven children: six sons and one daughter. Her elder son drives his own auto-rickshaw (a local three-wheeled motor vehicle). Two other sons drive a rented auto-rickshaw. Her fourth son has a business selling clothes. The others are enrolled in a local school in her neighborhood. Rukhsana baji’s husband drives a truck. He carries loads of fruits and vegetables and delivers them in different places. Rukhsana baji is a housewife and prefers doing household work and taking care of her family. She is applying for a loan to repair her son’s auto-rickshaw.
She has several other members in her loan group. Tasleem baji requests a loan to buy jewelry to resell. Bushra baji wants a loan to buy an auto-rickshaw. Maryam baji requests a loan to buy plastic beans to make boxes for keeping bundles of threads.
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.