Zareena Malik Bashir Ahmad Group
Meanwhile, Zareena baji has a clothes-selling business, which she has operated for the past 7 years. Indeed, she collects clothes from the famous cloth markets of Lahore (“Ichra Bazaar and Anarkali”) and sells such clothes in her community for a profit. On average, she sells 15 suits per week, and she earns $8 to $10 by doing so. Notably, she has already successfully repaid two prior loans from Asasah, a microfinance institution of Pakistan. She is now applying for another loan to expand her clothes-selling business.
She is joined in her loan group by four other members: Shamim baji seeks a loan to buy groceries for her grocery shop; Maqsoodan baji requests a loan to buy bed sheets to resell; Hakim baji is in need of a loan to buy vehicle wheels to resell; and Saima baji would like a loan to repair her auto-rickshaw (a local three-wheeled motor vehicle). In this way, 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