Group Lending

The rules for lending inside a cycle: one loan at a time, no borrowing with a fine, a share-based ceiling.

Workflow

  1. 1

    Origination rules

    A group loan needs a running cycle, and the loan must fall due before the cycle ends. A member holds one loan at a time, and nothing is lent while a fine is unpaid.

  2. 2

    The term limit

    No product offered to a group may run longer than the constitution's longest loan term. The share ceiling is the basis for the loan ceiling.

  3. 3

    Payout and repayments

    The loan is paid out from the box and repayments are taken at the meeting. Guarantors are members offering social collateral, pledging no savings.