Majida baji is a 32-year-old married lady and a citizen of a city named Borewala, Pakistan. Her parents were not able to provide her education, so she dropped out from the school after 5th standard. Her husband's name is S. M., who is a mason by profession. She is the mother of five sons. Her eldest son works in a workshop. The others are enrolled in a local school which is located near to the house. Majida baji has a Punjabi food selling business. She does this work to help her husband so that he is able to meet the financial expenses. She successfully repaid her first loan from Asasah (a microfinance institute of Pakistan). Now she is applying for a loan to buy mason tools for her husband.
She is a group leader of some more women of her locality. Kosar baji wants a loan to buy fertilizer to resell. Rafiqan baji wants a loan for mason tools. Shahnaz baji wants a loan to buy a welding machine. Hanifan baji wants a loan to buy a donkey cart for loading. Rafiqan baji wants a loan to buy mason tools.
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.