"My name is Nasreen and I’m a 43-year-old married lady. I belong to a city which is famous for its hand-made items and shrines. I married a man whose name is S. and he is a driver by profession and has driven an auto-rickshaw (a local three-wheeled motor vehicle) for the past 5 years. I have five kids: two sons and three daughters. My elder son has a catering service for events. My youngest son is a carpenter and makes furniture. My daughters are getting an education by the grace of God. I have a boutique in which I display my clothes collection. I have a good number of customers. I have got a good reputation because I sell clothes on time with a good workmanship. I am applying for a loan to buy material (colored thread, cloth) to complete the orders of my customers.
I’m a group leader of some more women of my locality. Zahida Parveen Baji wants a loan to buy clothes for her boutique. Bilquis Baji wants a loan to buy thread to resell. Nasreen Bano Baji wants a loan to buy a sewing machine for sewing clothes."
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.