Siddiqa baji is a 43-years-old married lady and resides in a city called Borewala, Pakistan. She is the mother of three children: one son and two daughters. Her son works in a factory. Her elder daughter is in 8th standard and her younger daughter is in 5th standard. Siddiqa baji’s husband's name is G. H. and he drives an auto-rickshaw (a local three-wheeled motor vehicle). Siddiqa baji has a sewing business. She sews clothes for her neighbors and earns income. She successfully repaid her first loan from Asasah (a micro-finance institution in Pakistan). Now she is applying for a loan to change the body of the auto-rickshaw of her husband.
Siddiqa baji is the group leader for some more women from her locality. Zareena baji and Jamila baji and another Jamila baji each want a loan to buy an auto-rickshaw. Kalsoom baji wants a loan to buy vehicle wheels to re-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.