Kosar baji is a wife of M. and resides in Pakpattan, Pakistan. Kosar baji is the mother of four children: two sons and two daughters. Her elder son has a sweetmeat business. Her younger son is in kindergarten. Her elder daughter is in 5th standard and her younger daughter is in 3rd standard. Kosar baji’s husband has a fruits & vegetable selling business. He buys fruits & vegetables from a wholesale market and sells them on a cart in different areas. Kosar baji helps her son in the making of sweetmeat. She successfully repaid her two loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy more fruits & vegetables to expand her husband’s business.
She is joined in her loan group by a few more members. Khursheed baji requests a loan to buy a sewing machine for sewing clothes. Haleema baji requests a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle). Ameeran baji requests a loan to buy material (sugar and tea) for her tea stall.
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.