Group Loan

Purpose: Given to a group of members (self-help groups) who take collective responsibility for repayment.

Features:

• Entire group guarantees the loan.
• Amount depends on members’ savings and strength.
• Useful for Joint projects, business or income generating activities.
• Encourages teamwork and per accountability.

Repayment:                

• 1st loan - multiplier 1.5, maximum 6 months
• 2nd loan-multiplier 2, maximum 9 months
• 3rd loan onwards-multiplier 3, maximum 12 months

• Interest – 2%, reducing balance