Rashida parveen baji is 20 years old and resides in Pakpattan, Pakistan. Her husband, S. M., is a wood seller. Rashida baji has no children. She completed her education through 8th standard. She couldn’t complete her education because her parents arranged her marriage with S. M.. Rashida baji is a very talented lady who learned the art of knitting clothes from her mother. Now she knits clothes and helps her husband in improving the financial situation of her household. She is applying for a loan to buy more wood to expand her husband’s wood-selling business.
She is joined in her loan group by three more members. Shahnaz baji requests a loan to buy a grinding machine in which she will grind flour and wheat to sell in markets. Shamim akhtar baji and Farida baji each request a loan to buy thread 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.