Irshad baji is forty-four years old, married, and has been a citizen of a city named Lahore, in Pakistan, for the last nineteen years. She is an uneducated lady. Her parents were very poor and they had a large family. Irshad is married to a man whose name is B. M., and he runs a bakery in the community. He has been running this shop for the last ten years. Irshad baji is the mother of five children, four sons and one daughter. All of her children are enrolled in a local school. Irshad baji is a self-made woman. She is involved in a vegetable-selling business. She does this work to pay her children's school fees. Her family is very happy because of her loving support. Irshad successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying again for a loan to buy bakery materials (bread, eggs and butter) for her husband’s bakery shop.
She is the group leader of more women in her locality. Bilquis baji wants a loan to buy clothes to sell. Noreen baji wants a loan to buy leather for her shoe-making business. Sugran baji wants a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle).
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.