Naseem baji is a wife of N. A. and lives in Pakpattan, Pakistan. She owes a two-room, brick house and has been living in it for the past 10 years. She is the mother of six children: two sons and four daughters. Her elder son works as a delivery man delivering items to customers. Her younger son is in 3rd standard. Her daughters are enrolled in a local school in her neighborhood. Naseem baji’s husband has a vegetable-selling business. He buys vegetables and wheat from the wholesaler and sells it to different shops. He has been in this business for the past 10 years. Naseem baji helps her husband in the packing of vegetables and wheat in sacks. She successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to expand her husband’s business.
She is joined in her loan group by a few more members. Razia parveen baji requests a loan to buy beams for her shuttering business. Abida baji requests a loan to buy vegetables for her vegetable-selling business. Bilquis baji requests a loan to buy spices to pack in small bags and 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.