Shamim baji is 53 years old. She has lived in Pakpattan, Pakistan for 20 years. Her husband, Q. M., runs a grocery store in the community. Shamim baji is the mother of two sons. Her elder son works in a decorative embroider business and her younger son is a welder. She is applying for a loan to buy groceries to diversify her husband’s grocery store.
Shamim baji is the group leader. The others in her group are:
Ameena baji, who wants a loan to buy leather to sell.
Iram baji, who wants a loan to buy paint to sell.
Ameeran baji, who wants a loan to buy thread to sell.
Hamidan baji and Shahnaz baji, who each want a loan to buy beams for their shuttering businesses.
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.