What do you know about group loan and what are advantage of disbursing loan t ok groups

Question

Accepted Answer

Group loan is a loan given to a group of people who are jointly responsible for repayment.

Group loan is a type of microfinance where a loan is given to a group of people instead of an individual borrower.
The group members are jointly responsible for the repayment of the loan.
Group loans are advantageous as they reduce the risk of default as the group members act as guarantors for each other.
Group loans also promote social cohesion and encourage group members to support each other in their businesses.
Group loans are commonly used in developing countries to provide access to credit for small businesses and entrepreneurs.

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