Nusrat baji is the wife of M. and they have lived in a mid-size city named Vehari, Pakistan for the past ten years. Vehari city is famous for its shrines. She is the mother of three daughters. Her eldest daughter helps her in a clothes-making business. The others are receiving education from a local school. Nusrat baji’s husband works in agriculture. He sells fertilizer and seeds to the other farmers and sometimes takes care of their lands and charge fees. Nusrat baji is applying for a loan to buy fertilizers and seeds for her husband's business.
She is the group leader and there are two others in her group: Razia baji requests a loan to buy groceries for her grocery shop. Nasreen baji requests a loan to buy plastic beads for making plastic bottle caps and shopping bags.
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.