+91-912 999 3332
smjmicrofinance@gmail.com
A- Block Indira Nagar Lucknow Pin 226016
Monday - Friday / 8AM - 11PM
Group loans are a powerful financial tool designed to empower individuals by leveraging the strength of collective borrowing. These loans are typically provided to small groups of individuals who come together with a common goal of financial support, business growth, or community development. Unlike traditional loans, group loans rely on mutual accountability, where members collectively guarantee each other’s repayments, reducing the risk for lenders and increasing accessibility for borrowers. deal for small businesses, self-employed individuals, and rural entrepreneurs, group loans offer flexible terms, lower interest rates, and minimal collateral requirements.
Collective Borrowing – A group of individuals (typically 5-20 members) jointly applies for a loan, ensuring shared responsibility.
No Collateral Required – Most group loans are unsecured, making them accessible to those without assets.
Lower Interest Rates – Due to mutual guarantee and reduced lender risk, interest rates are often more affordable.
Encourages Entrepreneurship – Helps small business owners and startups secure funding for
Promotes Savings & Financial Discipline – Regular repayments cultivate responsible financial habits.
Builds Credit History – Members establish a credit record, improving future borrowing opportunities.
Community Development – Strengthens local economies by fostering financial independence.
