Rasool Baji is a citizen of a mid-size city named Raiwind in Pakistan. She owns a two-room brick house and has been living in it with her family for 10 years. Her husband, S. M., sells vegetables. He loads a cart with vegetables and takes it to different areas of Raiwind, calling out his products in a loud voice. Rasool Baji helps by arranging the vegetables on the cart in an orderly way so he can name them easily. Rasool Baji is applying for a loan to buy seasonal vegetables for her husband’s vegetable selling business.
Rasool Baji is the group leader of another three women from her locality. Zubaida Baji wants a loan to buy mason's tools. Rani Baji wants a loan to buy a donkey cart for loading. Hanifan Baji wants a loan to buy bangles to resell.
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.