Shahida baji is 29 years old, married, and lives in Kot Radha Kishan, Pakistan. Shahida baji quit school after passing the 8th standard because her parents couldn’t pay her education expenses. Shahida baji is married to M. A.. He has a motorbike rental business. He has been in this profession for the past five years. Shahida baji is the mother of one son who is four years old. Shahida baji successfully repaid her three loans from Asasah (a microfinance institute in Pakistan). Now she is applying again for a loan to buy another bike for her husband’s motorbike rental business.
She is a group leader of some more women of her locality. Suraiya baji wants a loan to buy a buffalo for her milk-selling business. Tasleem baji wants a loan to buy groceries for her grocery shop. Parveen baji wants a loan to buy chickens for her chicken-selling business. Anwar baji wants a loan to buy flour to sell.
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.