Rani baji’s husband has been selling wheat for the past 10 years. Rani baji is a housewife who prefers to do household work and take care of her family. She is applying for a loan to buy wheat to resell.
She is joined in her loan group by four more members. Munawar baji wants a loan to buy leather for her shoe-making business. Rafea baji wants a loan to buy seasonal fruits for her fruit-selling business. Asma baji wants a loan to buy cigarettes to resell. Ameer baji wants a loan to repair an auto-rickshaw (a local three-wheeled motor vehicle).
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.
Note: Baji, which means "older sister," is a term of respect for women in Pakistan.
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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