Question

Which of the following are true about the Grameen group lending model? Select all that apply....

Which of the following are true about the Grameen group lending model? Select all that apply.

a. members cross-guarantee payment of the other members

b. all members get loans at the same time

c. provide psychological support for members

d. if a member defaults, the other members can get a larger loan

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Answer #1

Grameen group lending model is a unique concept introducted to help sustain financially, the low income group, marginal farmers and other individuals. This model precisely revolves around a group of limited individuals who are formed as a Group and thus the responsibilties are shared. This is a practice where small groups borrow funds collectively and the group members encourage one another to repay. If any one member of the group defaults on the loan repayment, the other members are obligated to repay.

Answer: a. members cross-guarantee payment of the other members

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