Nasreen baji is a wife of M. R. and they have lived in a mid-size city named Vehari, Pakistan for the past six years. Vehari city is famous for its shrines. Her husband is an auto-rickshaw (a local three-wheeled motor vehicle) driver and has been in this business for five years. Nasreen baji is the mother of two children, one son and one daughter who are in school. Nasreen baji sews clothes to pay for her children's school fees because her husband’s income barely meets the financial expenses of the household. She is requesting a loan to change the body of her husband’s auto-rickshaw (a local three-wheeled motor vehicle) so he can continue to earn his income.
She is the group leader of a group with four other women. Shagufta baji requests a loan to buy fertilizer to sell. Gaman baji requests a loan to buy a donkey cart. Bashiran baji requests a loan to buy scrap for her scrap business. Rukhsana baji requests a loan to buy a buffalo for her animal-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.