Khursheed begum baji is a 48 year old married lady who has lived in Pakpattan, Pakistan for the past 15 years. Pakpattan city is famous for its shrine places, which people visit to make wishes. Her husband's name is N. A. who is a daily wage laborer. She is the mother of one son who works in a factory. Khursheed baji has a fruit selling business, which she runs from home. People of her community come to her to buy fruit. She does this work to share the financial burden of her family, because inflation is increasing day by day. She is applying for a loan to buy seasonal fruits to earn a good income.
She is a group leader of some more women of her locality. Naseem baji wants a loan to buy goats for her animal selling business. Nasreen begum baji wants a loan to buy another video game for her game shop. Nooran baji wants a loan to buy groceries for her grocery shop. Sharifan baji wants a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle).
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.