Group Class Diagram

Groups are at the heart of the microfinance methodology. A group can have one or more clients or no clients. In some MFI methodologies, groups are the primary units the MFIs interact with; groups maintain a single group savings account and receive a single group loan from the MFI. In other cases, all MFI loans are provided directly to the clients and groups are simply a collection of individual clients. The benefits of the group include: By vouching for other members of the group, the group provides due diligence of creditworthiness. By co-signing the loan, the group provides insurance of payment by individuals. The group provides reinforcement, esprit de’ corps, encouragement. By aggregating loans and accounts, operations can be more efficient.

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