Farida baji’s husband is an electrician by profession. Farida baji is a housewife and prefers to do household work and take care of her family. She is applying for a loan to buy medicines because her elder son wants to open his own medical store.
She is joined in her loan group by several more members. Kosar baji and Bilquis baji each want a loan to buy garments to re-sell. Sabra baji wants a loan to buy spare parts for vehicles for her spare-parts shop. Nusrat baji wants a loan to buy goods (snacks, biscuits) for her canteen.
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.
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Success!! The loan was 100% repaid