Anees Fatima Baji is a wife of M. Shabir and resides in a city named Arifwala, Pakistan. She owes a two-room brick house and has been living in it for the past 20 years. Anees Baji completed her education till 5th standard. She has no kids. Anees Baji’s husband has a clothes selling business. He has been in this business for the past 10 years. He buys clothes from different cities (Lahore and Faisal Abad). Anees Baji is a housewife and prefers to do household work and take care of her family. She successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy more clothes to expand her husband’s business.
She is joined in her loan group by a few more members. Ameena Baji wants a loan to buy a buffalo for her milk selling business. Naseem Fatima Baji wants a loan to buy fruits for her fruit selling business. Sanam Baji wants a loan to buy cigarettes to resell. Salma Baji wants a loan to buy corn oil to resell.
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.