Ten hands are stronger than one signature
A group loan is given to a small group of members — usually 5 to 10 women from the same village or mohalla — who agree to stand guarantee for one another. Instead of asking for land papers or gold, we rely on the group's own discipline and social trust.
समूह ऋण में 5 से 10 सदस्य मिलकर एक समूह बनाते हैं और एक-दूसरे की ज़िम्मेदारी लेते हैं। न ज़मीन के कागज़ चाहिए, न सोना गिरवी रखना पड़ता है।
- No collateral — the group guarantee is the security.
- Every member gets her own loan and her own repayment card.
- Group meetings keep collections regular and disputes rare.
- Good repayment record means a larger loan in the next cycle.
Group loan at a glance
- Loan amount₹20,000 – ₹1,00,000
- Repayment period12 – 24 months
- Group size5 – 10 members
- InstalmentWeekly or monthly
- SecurityGroup guarantee only
- PrepaymentAllowed
Final amount, rate and tenure depend on group assessment, repayment capacity and our credit policy at the time of sanction.
What you need to qualify
Eligibility criteria
- Age between 21 and 58 years at the time of application.
- 5–10 members from the same village or locality, known to each other.
- No two members from the same household in one group.
- A running household enterprise or income source for each member.
- Resident of the area for at least 1 year, with valid address proof.
- Satisfactory repayment history with other lenders, if any.
Documents required
- Aadhaar card of every member (original shown, copy submitted).
- PAN card or Form 60, wherever applicable.
- Two passport-size photographs of each member.
- Address proof — ration card, voter ID, electricity bill.
- Bank passbook copy for the disbursement account.
- Brief details of the business or income activity.
Note: The exact document list can vary from case to case. Our field officer will give you a written checklist at the first group meeting, so nothing is left to guesswork.
What members use a group loan for
Group loans are meant for income-generating activity — the loan should help the household earn more, not just spend more.
Small shop & stock
Buying stock for a kirana shop, cosmetics counter, cloth or bangle shop.
Tailoring & crafts
Sewing machines, raw material, embroidery and handicraft work done from home.
Dairy & livestock
Purchasing a buffalo or goats, cattle feed, shed repair and veterinary costs.
Vending & trading
Daily working capital for vegetable, fruit and street vending.
Service business
Tools and equipment for repairing, carpentry, electrical and parlour work.
Business expansion
Adding a second product line, a small counter or a delivery cycle.
From group formation to disbursement
Group formation
5–10 willing members form a group and choose a group leader. We explain the rules in a first meeting.
Training & KYC
A short orientation on repayment discipline, followed by document collection and KYC verification.
Field verification
Our officer visits each member's home and business to assess income and repayment capacity.
Sanction & payout
The approved amount is sanctioned in writing, disbursed, and repayment cards are issued to all members.
Have your group ready?
Call us and we will arrange the first group meeting in your village — usually within a few days.