Rashidan Baji is a 48-year-old married lady and a citizen of a city named Arifwala, Pakistan for the past 10 years. Her husband's name is Z. H., a shoe seller by profession, who has been in this business for the past 5 years. Rashidan Baji is the mother of three sons. Her elder son runs a small hotel in the food market and attracts customers with his Punjabi foods. The next runs a vegetable selling business. Her younger son works in a private office as an telephone operator on a monthly wage. Rashidan Baji is a very hardworking lady. She operates a clothes knitting business. She knits clothes and sells them to the cloth markets to earn an income. She saves her income in a community bank and plans to marry off her elder son with her savings. She is applying for a loan to expand her second son’s business by buying more vegetables.
Rashidan Baji is the group leader of three another women from her locality. Shahnaz Baji wants a loan to buy electric supplies (wires, switch boards and switches) to sell. Maqsoodan Baji wants a loan to buy a sewing machine for sewing clothes. Khursheed Baji wants a loan to buy seasonal fruits for her fruit selling 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.