Parveen baji is a 45 year old married lady who has lived in Lahore, Pakistan for the past 28 years. She is an uneducated lady because her parents couldn’t bear her education expenses. Parveen baji married S. M., who is a driver by profession and drives an auto-rickshaw (a local three-wheeled motor vehicle). Parveen baji is the mother of one son whose name is Riaz M. and he runs a boutique. Parveen baji helps her son in his boutique by preparing embroidered dresses which her son displays in his boutique. Parveen baji did not learn this art from anyone, but believes it was a gift from God. Her son feels proud to be her son. She successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying again for a loan to buy materials (clothes, colored thread and sketches) for her son’s boutique.
Parveen baji is the group leader of five other women from her locality. Adfarina baji wants a loan to buy cricket products (bat & ball) to sell. Mussarat zareen baji and Alvina baji each want a loan to buy clothes to sell. Rani baji wants a loan to buy leather for her shoe making business. Shamim baji wants a loan to buy vehicle spare parts 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.