Parveen akhtar baji is a forty-seven-year-old married lady and has been a citizen of Lahore, in Pakistan, for the last ten years. Parveen baji’s husband, M. K., has been in the scrap business for the past six years. Parveen baji is the mother of four children - three sons and one daughter. Her sons are involved in their father’s scrap business. Her daughter reads in 9th standard and wants to get a higher education after completing her 10th standard. Parveen baji respects her wish, and to help realize that wish she embroiders clothes and makes money selling them in a market. She successfully repaid her first two loans from Asasah (a microfinance institute of Pakistan). Now she is applying again for a loan to buy scrap (plastic bottles, waste papers) to sell.
Parveen baji is the group leader of four other women from her locality. Another Parveen akthar baji wants a loan to buy rice to sell. Mussarat shaheen baji wants a loan to buy clothes to sell. Munawar baji wants a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle). Suraiya baji wants a loan to buy scrap for a scrap business.
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.