Solidarity groups

lending groups & community banks

Trust replaces collateral.

Statistics show that more women repay their loans than do men. In addition, lending to women increases family expenditures on health, education and nutrition.

Women who know each other and who are from the same community or area will form one or more solidarity groups. Each solidarity group will be responsible for the repayment of the individual loans made to each group member. Each new member must be approved by the existing lending group members. Once initial training is completed, including the development and approval of a business plan by our credit committee, loans are made to each of the wonem in the group.

As client cash flows grow, we may make individual (rather than group) loans to some individuals where the potential exists to grow their businesses to the point where the businesses can hire employees. Individual loans will be restricted to borrowers who have "graduated" from a lending group and who have established a satistactory credit history with us.