How a group loan works
Goodname Finance
Joint liability, the group limit and why the money is paid into the group's own account.
A group loan lets people who know one another borrow together. This is how it works at Goodname Finance.
Registering the group
The group is registered with its members and its officials, such as a chairperson and treasurer. A branch manager approves it. The group is then given a limit.
Joint liability
Members carry the loan together. That gives each member a reason to see it repaid, so it is worth knowing the other members well.
Where the money goes
A group loan is paid only into the account the group has registered. It is never paid to one member's phone.
Borrowing again
A group cannot borrow beyond its approved limit. Repaying on time is how a group's limit can grow.