'My name is Azra and I’m a 39-year-old married lady. I have been a citizen of Lahore, Pakistan, for the past 16 years. My husband's name is M. H.. He works in a factory for a monthly wage. I am a mother of seven kids: four daughters and three sons. My first three daughters prepare embroidered dresses. My elder son is involved in a dairy business. The others are getting education from a local school. I help my daughters in preparing embroidered clothes. I have successfully repaid my first loan from Asasah (a microfinance institute of Pakistan). Now I am applying again for a loan to buy another buffalo to expand my sons’ dairy business.'
Azra is the group leader of six other women from her locality. Razia baji and Qubra baji each want a loan to buy iron to sell. Shahnaz baji wants a loan to buy seasonal fruits for her fruit-selling business. Azran baji and Razia baji each want a loan to buy a donkey cart for loading. Parveen akhtar baji wants a loan to buy a sewing machine for sewing clothes.
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.