1.2: Credit-Building Lending Circles

Respond to the demand of families to organize and run their own Lending Circles within FII.

Other Information:

Similar to the Character-based Loan, which was developed in response to family demand, FII is responding to the demand of families to organize and run their own Lending Circles within FII. A lending circle is when people who may not have access to bank credit or prefer to borrow from people they know and trust get together to form a group loan. Everyone in the group contributes money to the loan, and everyone gets a chance to take the loan out. People across the world organize loans between friends or family without a financial institution all the time, and lending circles are known throughout the world: Susus throughout Africa, Paluwagan in the Philippines, Lun-hui in China, and Tandas in Mexico. Because informal lending circles do not help people build credit, FII formalizes these financial transactions with the use of electronic payments. These payments in turn are tracked and reported to the credit agencies and help improve participants' credit score.

Indicator(s):

Indicator:1

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