Definition: Group Lending

Group Lending - "a scheme in which a bank lends to peer borrowing groups of, say, five or so people with joint liability. The group approves loans to other members as a substitute for the bank’s screening process. Failure to repay by any member jeopardizes the group’s access to future credit. See a prominent example, the Grameen Bank." - source: Economic Development 4th Edition by E. Wayne Nafziger