Hidayat baji is 47 years old, married, and the mother of four children: two sons and two daughters. Her elder son completed his education through 10th standard and started work as a building supervisor. Her daughters are in school. Hidayat baji’s husband is a building contractor and provides construction materials to builders. He has been in this business for the past 15 years. Hidayat baji embroiders dresses at home and sells the in the market. Her daughters help her. She shares her earnings with her husband to meet the expenses of her household. She successfully repaid her two loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy more construction supplies (beams, sand, and cement) for her husband.
She is joined in her loan group by a few more members. Paveen Akhtar baji requests a loan to buy clothes for her clothes-selling business. Shabana baji requests a loan to buy another snookertable for her snooker club. Sabran baji requests a loan to buy tools for her motor workshop. ZulaiK. baji requests a loan to buy material (lentils, cooking oil and spices) for her food business.
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.