Irshad bano baji is the wife of I. A. and has resided in the city of Lahore, Pakistan for the past 30 years. Irshad baji is the mother of three sons. Her elder son has a vegetable selling business. The middle son is an electrician. Her younger son runs a grocery shop. Irshad baji’s husband has run a butcher shop in the community for 5 years. Irshad baji keeps herself busy with a clothes sewing business. Her sewing activity gives her benefit of some income. She saves her income in a committee and plans to marry off her elder son with this committee savings account. She successfully repaid her three loans with Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy animals (goats) for her husband’s butcher shop.
Irshad bano baji is the group leader of four women from her locality. Shahida parveen baji wants a loan to buy an auto-rickshaw (a local three-wheeled motor vehicle). Fahmida baji wants a loan to buy a molding machine. Raheela baji wants a loan to repair her vehicle named “shahzore”. Fozia baji wants a loan to buy animals (goats) for her butcher shop.
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.