Naseem Akhtar M.iqbal Group
Naseem Akhtar baji independently operates a wood-selling business, which she started for the benefit of her children because she wants to provide them with a good education and a good name in their society. Notably, Naseem baji has already successfully repaid one loan from Asasah, a microfinance institution in Pakistan. Now she is applying for another loan to buy more seasonal fruits and seasonal vegetables to expand her husband’s business.
She is joined in her loan group by four other members: Jamila baji seeks a loan to buy groceries for her grocery shop; Hanifan baji requests a loan to buy cosmetics for her cosmetics sales business; Kalsoom baji is in need of a loan to buy electric supplies (e.g., wires and switchboards) for her electric appliance shop; and Shakooran baji would like a loan to buy an auto-rickshaw (a local, three-wheeled motor vehicle). This is a group loan; as such, the loan proceeds will be distributed amongst the group members, each of whom will invest in her own business. Importantly, the group members mutually guarantee one another's loans; as a result, if one group member does not repay her portion of the loan, then the other members are responsible for curing the arrears.
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