Microfinance Types: Group and Individual Lending

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Microfinance > Forum > Microfinance Types: Group and Individual Lending

Microfinance Types: Group and Individual Lending
Anneke Zwart, Student (University), Netherlands, Member
In the article ‘Microfinance as Business’, Roodman and Qureshi (2006) dinstinguish two different types of microfinancing: group lending and individual lending. Besides, within group lending, two subgroups are distinguished:
  1. GROUP LENDING: 1.1. Group solidarity lending: In this type of microfinance, borrowers need to form groups that are jointly and severally liable for all outstanding loans. This implies that each individual within the groups can be held liable for others’ loans, each individual can be held responsible for outstanding loans. Usually, the structure of disbursements and repayments is systematized, for example repayments are due on a weekly basis and constant over the period of the loan. 1.2. Village banking: The second form of group lending brings together 15 to 30 indivduals to which the banks provide a single loan. After that, authority is delegated to the groups of individuals for on-lending to individual members, of which the size of the loans can vary amo (...) Read more? Sign up for free

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Microfinance
Summary
Forum
🔥PROs and CONs of Microfinance: An Overview
Problems with Microfinance: Beneficiaries Lack Financial Expertise
Microfinance Types: Group and Individual Lending
Best Practices
🥇What is Financial Inclusion?
🥈Accreditation in Microfinance / Financial Inclusion
🥉Disadvantages of Microfinance / Microloans. Risks
What is Poverty Reduction in Development Economics?
History of Microfinance
Microfinance Counseling is Necessary
Middle Class is Key for Improving Quality of Life
Micro Financing Helps
Using Post Offices Towards Microfinancing
Micro Finance is for Business People
Recent Microfinance Trends
Micro Finance for Persons with Disabilities
Is Microfinance a Success?
Microfinance & Microcredit Need Kind-hearted People
Microfinance Needs Trust
During its Evolutionary Path, Microfinance is Getting More Expensive...
Microfinance Impact on Rural Development
Microfinance for Housing (MFH)
Microfinance Research and Intelligence
Non-interest Banking
Taxation of Microfinance Institutions
Influence of Economic Crisis on Microfinance
Management and Business Coaches Needed in Microfinance
Microfinance Challenge: Solvency of the Borrowers
Exclusion of Conventional Commercial Banks from Establishing Micro-finance Banks
What is the Best Way to Manage Microfinance in Sudan?


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