group lending
Shared liability loans
Group lending is a microfinance practice where small loans are made to individuals who form a borrowing circle, with each member guaranteeing the others' repayment.
If one borrower defaults, the group shares responsibility.
This peer pressure and mutual support mechanism allows lenders to extend credit to people who lack traditional collateral: The village women formed a group lending circle to fund their small businesses.
- microloanSmall-scale credit assistance
- small business loansCredit for modest enterprises
- collectiveJointly organized group
- borrowersThose receiving loans
- villageSmall rural community
cooperative · solidarity · repayment · circle · trust · guarantee · women · women's empowerment · poverty · mutual · installment · default · peer · peer pressure · savings · empowerment · collateral · microfinance
- cooperative financeco-op, cooperative, credit union, credit unions, cooperative bank
- microfinancemicrocredit, small loans, microloan, microloans, loan officers
- Banking Accessbank accounts, checking accounts, savings accounts, mobile banking, online banking
- farm financefarm loan, crop insurance, subsidies, farm credit, operating loan
- farm creditfarm credit, farm loans, land banks, land loans, emergency loans