Shahnaz baji is a 30-year-old married woman and a citizen of Borewala, Pakistan for the past 12 years. Her husband's name is S. M., and he is a mason by profession. Shahnaz baji is the mother of three children: two sons and one daughter. None of her children go to school. Shahnaz baji wants to send her children to school but due to her few financial resources she cannot do this. Her husband’s income is very low, so she shares the financial burden by knitting clothes. She successfully repaid two loans from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan for her husband, because her husband wants to start a business selling animals.
She is the group leader of more women in her area. Sajida parveen baji would like a loan to buy a donkey cart for loading. Jamila baji would like a loan to buy a sewing machine for sewing clothes. Gulnaz akhtar baji would like a loan to buy animals for her business selling animals.
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.