Razia baji is a 28-year-old married lady and has lived in a city called Multan, Pakistan for the past 28 years. She is the mother of four kids: three sons and one daughter. None of her children goes to school. Her husband's name is L. A. and he is a fruit seller and has been selling fruit for the past 15 years. He buys fruit from the fruit market and sells it in different communities of Multan. Razia baji helps her husband in arranging the fruit in their cart. She is applying for a loan to expand their fruit-selling business by buying more fruit.
She is the group leader and there is another lady in her loan group. Saira baji wants a loan to buy burgers, eggs, cooking oil, and spices for her burger joint.
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.