Shamim M. Hanif Group
Shamim baji is the mother of four sons. Her eldest son has a flour-selling business. Another is a daily wage laborer. The others are getting education from a school which located near their house. Shamim baji has a knitting business with 6 years' experience making clothes. She does this work to pay the school fees of her younger sons. She successfully repaid her first two loans from Asasah (a micro-finance institute in Pakistan). Now she is applying for a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle) for her husband so that he will able to get all the profit from his hard work.
Shamim baji is the group leader for some more women from her locality. Sabran baji wants a loan to buy cooking oil to re-sell. Rashidan baji wants a loan to buy vehicle spare parts to re-sell. Amna baji wants a loan to buy raw materials (cooking oil, spices, and flour) for her Punjabi food (Samosas and Pakodas) 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.
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Success!! The loan was 100% repaid