I am Shahnaz and I am 31 years old. I am married with five children: four daughters and one son. All of my children are attending a local school. I have lived in a city named Arifwala for the last 10 years. I am uneducated. My husband's name is M. E.. He runs a sweetmeat shop in a food market. He has been in this business for the past 5 years. He learned this business from his father. I run a sewing center where I teach children how to sew dresses. I use my income to pay my children’s school tuition fees. I have successfully repaid my two previous loans from Asasah (a microfinance institute of Pakistan). Now I am applying for a loan to buy material (cooking oil, sugar and dry fruits) for my husband’s sweetmeat business.
I am a group leader with two other women from my town. Sajnan baji wants a loan to pay for an auto-rickshaw (a local three-wheeled motor vehicle). Kalsoom baji wants a loan to repair her vehicle named “Shahzore”.
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.