Rubina baji is a 57-year-old lady and resides in a city named Vehari, Pakistan. She owes a two-room brick house and has been living in it for the past 5 years. Her husband's name is Z. A., and he is a milkman and sells milk in milk shops as well as in the community. He has been in this profession for the past 25 years. Rubina baji helps her husband in getting milk from the buffalo. They both get up early in the morning and get 12 kg milk and fill the milk jars. Presently they have one buffalo and they want to buy another buffalo to expand their milk selling business.
She is a group leader of a few women in her locality. These women are very responsible and cooperative. Nazia Noreen baji wants a loan to buy animals (goats) for her butcher shop. Tasleem baji wants a loan to buy animals (goats and sheep) for her animal 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.
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.