Kosar Baji is a wife of S. A. and lives in a historical place named Yadgar of city Lahore, Pakistan. She owes a room and has been living in it for the last 24 years. She is the mother of four children: one son and three daughters. Her elder daughter is married. The next to her is in 9th standard. Her younger daughter is in 5th standard. Her son is in 4th standard. Kosar Baji’s husband has a shoe-making business. He has been in this business for the past 10 years. Kosar Baji is a housewife and prefers to do household work and take care of her family. She is applying for a loan to buy material (leather, nails and thread) to make more shoes to sell and earn a good profit.
She is joined in her loan group by a few more members. Shamim Baji wants a loan to buy material (colored thread, sketches and beads) for her decorative embroidery business. Nargis Baji and Ishrat Baji each want a loan to buy leather to make shoes to sell in the market.
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.