After six weeks, assuming those two begin repaymentand they will be under considerable group pressure to do soother group members also become eligible for loans. Thus collective responsibility serves as collateral on the loan. Credit is supervised closely both by the groups of borrowers formed by the bank, and by bank staff. There is a stress on credit discipline and collective borrower responsibility, and in addition the bank focuses on saving, with both compulsory and voluntary savings programs.
Interest on all loans is set at 16% and the repayment rate is above 95%.