Imtiaz baji is a 48-year-old married woman and a citizen of Borewala, Pakistan for the past 25 years. Her husband's name is M. A., and he has a business selling animals for meat. He buys animals from animal markets and sells them to the butcher shops to earn a profit. Imtiaz baji is the mother of six children: two sons and four daughters. All of her children are getting an education from a school located near her house. Imtiaz baji successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying again for a loan to buy animals (goats and sheep) for her husband’s animal selling business.
She is the group leader of more women in her area. Iqbal begum baji would like a loan to buy a donkey cart for loading. Salma baji would like a loan to buy leather to sell. Khatoon baji would like a loan to buy fruits and vegetables for resale. Shamim akhtar baji would like a loan to buy spare parts for motorbikes 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.