Iqra baji is the wife of A. H. R. and lives in a place named Yadgar of the city Lahore, Pakistan. She has been living in this place for the last 14 years. She is the mother of six chidren: four daughters and two sons. All of her children are enrolled in a local school in her neighborhood. Iqra baji’s husband runs a PCO, having 10 years' experience there. Iqra baji herself runs an academy where she teaches students of different subjects. Iqra baji is an educated lady and completed her education till 10th standard. She successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy mobile phone cards for her husband’s PCO.
She is joined in her loan group by a few more members. Kishwar baji wants a loan to buy leather to resell. Fozia baji wants a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle). Bushra baji wants a loan to buy a lathe machine. Zeenat baji wants a loan to buy flour for her bread-making business.
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.