Nasreen akhtar baji is a 36 year old married lady who lives in a famous historical place named Yadgar in the city Lahore, Pakistan. She has lived in this place for the past 5 years. She completed her education to 8th standard but couldn’t study further. Her mother was a midwife, and now she works in the same profession. Her husband's name is M. R., and he has run a grocery shop in the community for the past 10 years. People are used to coming to him to buying groceries, and he has a good reputation in this business.
Nasreen baji is a mother of two kids: one son and one daughter. Her son reads in 3rd standard and her daughter reads in 5th standard. Nasreen baji successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan again to buy groceries to diversify her husband’s grocery shop into a grocery store.
She is a group leader of a few more members of her locality. Shamshad baji wants a loan to change the body of her auto-rickshaw (a local three-wheeled motor vehicle). Nasreen baji wants a loan to buy religious (Islamic) books for her bookshop. Shabnam baji wants a loan for her holy book (Quran-e-Pak) selling business. Farzana baji wants a loan to buy leather and nails for her shoe making 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.