Ameena baji is a 50 year old married lady and has resided in a city named Arifwala, Pakistan, for the past 30 years. Her husband's name is A. G.. He runs a toy shop and has 6 years experience in the business. She is the mother of three sons. Her elder son has a sweetmeat selling business. The next son is a driver and drives a rented auto-rickshaw (a local three-wheeled motor vehicle). Her youngest son reads in kindergarten. Ameena baji works hard to pay for the school fees of her youngest son. She sells milk, which she gets from her buffalo. Presently she has one buffalo but she wants to buy another with the profit of her milk selling business. She is applying for a loan to buy an auto-rickshaw for her son.
She is a group leader with some other women in her locality. Sugran baji wants a loan to change the body of an auto-rickshaw. Sharifan baji wants a loan to buy tools to repair vehicles. Shamim baji wants a loan to buy a buffalo for her milk selling business. Begum baji wants a loan to buy groceries for her grocery shop.
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.