Kosar Parveen baji is a 49 years old widow and a mother of two sons. Kosar baji struggled hard after the death of her husband. She worked day and night to give their children good education. She started sewing clothes for her neighbors, and then one of her neighbor made helped her contact a clothing factory. The factory owner gave her orders to sew trousers on weekly basis. She invested her earnings in her sons' education. Both her sons completed their education through the 10th standard, and now they both work. The youngest son started a plastic bead-selling business. He buys plastic beads from a factory and sells to different shops. Kosar baji successfully repaid her two loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy more plastic beads to expand her son’s business.
She is joined in her loan group by a few more members. Shahla R. baji and Haleema baji and Irshad baji each request a loan to buy clothes for their clothes-selling business. Norseen baji requests a loan to buy groceries for her grocery shop.
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.