Shamim baji is a 51-year-old woman and the wife of M. A., who has sells construction supplies. He has been in this business for the past 10 years. Shamim baji resides in Kasur, Pakistan. She owns a two-room brick house where she has been living for the past 14 years. She is the mother of five children: four sons and one daughter. Her eldest son is a cobbler. The next son is an electrician. Her two younger sons want to be cobblers like their elder brother. Her daughter stays at home and helps her to embroider dresses.
Shamim baji sells the embroidered dresses in a cloth market and earns a profit. She is saving her profit for the marriage of her daughter. She has successfully repaid two previous loans from Asasah, a microfinance institute in Pakistan. Now she is applying for a loan to buy construction supplies, such as cement and sand, for her husband’s business.
She is joined in her loan group by three other members. Parveen baji wants a loan to buy wood to resell. Munnaza Tanveer baji wants a loan to buy fruit to resell. Bushra baji wants a loan to buy a buffalo for her milk-selling 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.
Note: 'Baji,' which means 'older sister,' is a term of respect for women in Pakistan.
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.