Ramzana Baji is a 39-year-old married lady. She owns a 2-room home in the city of Vehari, Pakistan, and has lived in it with her family for the past 8 years. Her husband's name is M. A. and he is a mason by profession. Ramzana has 2 sons. Both of her sons are getting education from a school that is located near the house. Her husband has no fixed income. He can only earn income when he gets a contract to construct a building. So she helps him by doing stitching and embroidery. In Pakistan it’s a big trend to wear embroidered clothes. And by the grace of God she knows how to make embroidery on dresses. Her art gives her a good income which helps her husband with the other financial expenses. She is applying for a loan to buy an electric sewing machine, which would allow her to make more dresses and earn income.
She is a group leader of some more women in her locality. Kosar Baji and Rehana Baji each want a loan to buy an auto-rickshaw (a local 3-wheeled motor vehicle). Manzooran Baji wants a loan to buy groceries for her grocery shop. Begum Amna Baji wants a loan to buy vehicle wheels for selling. Rubina Baji wants a loan to buy cloth for her cloth selling 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 each other'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.