Rubina M.javed Group
Meanwhile, Rubina baji has her own boutique where she displays and sells her collection of different kinds of clothes (e.g., simple, stitched clothes as well as intricate, embroidered clothes). She has been in this line of business for 9 years. Notably, Rubina baji has already successfully repaid two prior loans from Asasah, a microfinance institution in Pakistan. Now she is applying for another loan to buy additional materials (e.g., cloth, colored thread, and sketches) for her boutique.
She is joined in her loan group by four other members: Kosar Parveen baji seeks a loan to buy vegetables for her vegetable-selling business; Shamim Akhtar baji requests a loan to buy more clothes for her clothes-selling business; Fariha naz baji is in need of a loan to buy the same materials Rubina Javed is seeking (cloth, colored thread, and sketches) for her boutique; and Shamim baji would like a loan to buy bed sheets to resell. 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