Shazia kosar baji, 33, is married and has lived in Borewala, Pakistan for the past 15 years. Shazia baji is married to M. J. who is a painter by profession. He performs his duties only when people call him to paint their houses. Shazia baji is the mother of five children: four daughters and one son. All of her children attend the school that is located near their house. Shazia baji helps her husband by sewing clothes for neighbors and relatives. She uses her income to pay her children's school fees. She is applying for a loan to buy paint so her husband can fulfill the orders of his customers to paint their houses.
Shazia baji is the group leader for the following women of her locality:
Ashraf mai baji who wants a loan to buy groceries for her grocery shop.
Sugran baji who wants a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle).
Suraiya baji who wants a loan to buy vehicles spare parts to sell.
Ghulam Fatima baji who wants a loan to pay off the remaining installments of her auto-rickshaw.
Parveen baji who wants a loan to buy supplies (chairs, creams, and razors) for her salon.
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.