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About

Group Loan

Group loan refers to a financial arrangement where a group of individuals, typically with a common purpose or shared background, come together to access a loan collectively. It offers an opportunity for individuals who may not qualify for individual loans to access credit by pooling their resources and sharing the liability. Group loans are often facilitated by microfinance institutions or community-based organizations that provide financial services to underserved populations. The group members act as co-guarantors for each other, ensuring repayment and fostering a sense of mutual responsibility. Group loans have proven to be an effective tool in promoting financial inclusion, empowering marginalized communities, and supporting small-scale entrepreneurship.