Kaniz Fatima baji is a 54-year-old widow and resides in an area called Kot Radha Kishan which is 24 km from the town of Kasur, Pakistan. She has been living in this town for the past 10 years. She is the mother of five kids: four sons and one daughter. Her eldest son repairs sewing machines. The next one works in a factory. The third son works in a musical group as a drummer. Her youngest son works in a gas station. Her daughter stays at home and does household work. Kaniz baji is a midwife with experience gained over the past 12 years. She is applying for a loan to buy tools for her son so that he will be able to repair sewing machines easily and earn a good profit.
Kaniz Fatima baji is the group leader for several more women. Safia baji wants a loan to buy mason's tools. Abida baji wants a loan to buy a buffalo for her milk-selling business. Suraiya baji wants a loan to buy thread to re-sell. Seema baji wants a loan to buy a donkey cart for carrying loads. Irshad baji wants a loan to buy steel utensils to sell.
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.