Amanano Rural Bank

The group can collectively decide on repayment schedules that align with their earnings or revenue cycles. This could be monthly or after harvesting cycles, particularly if the group is involved in agriculture or seasonal businesses.

Group loans often come with lower interest rates because the group as a whole shares the risk. This makes borrowing more affordable and attractive to low-income groups or associations.

Since the loan is backed by the group’s collective responsibility, individual collateral is not typically required. This makes it easier for rural groups to access credit even if they do not have valuable assets to offer as security.

• By borrowing as a group, members can access larger loan amounts than they might individually. This can enable community-driven projects, business ventures, or cooperative initiatives.

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• • Group loans encourage financial discipline, teamwork, and accountability within the group, as each member has a stake in ensuring the loan is repaid on time.