Group Loan Description

A Group Loan is designed to offer financial support to a group of individuals, typically within a community or an organization, who share a common goal or purpose. This type of loan is generally aimed at empowering small businesses, supporting community projects, or providing financial inclusion to underserved populations.

Members of the group co-guarantee each other's loans, ensuring collective responsibility and mutual accountability. The loan amount is either divided equally among members or utilized for a shared purpose.

Core Eligibility Criteria

Group size: Typically ranges from 5 to 20 members.

Members must reside in the same community or work together.

Stable income source or willingness to start a business.

Trust and mutual understanding among group members.

Builds credit history for individuals with no prior access to credit.

Promotes savings and financial discipline.

Empowers small businesses and enhances community development.