Solidarity group lending

• Who benefits and for which purpose?
• Loan characteristics for informal group members
• Advantages of solidarity group lending
• Required documents
• Loan guarantees

Who benefits and for which purpose?

Loan characteristics for informal group members

• The following lending scheme is applied within this product:
  • up to 5000 lei, during the first year of group membership;
  • up to 10000 lei, during the second year;
  • up to 15000 lei, during the third year.
• Loan term: up to one year.
• Interest ranges from 18 to 24% per year;
• Quaurtely interest payment;
• Loan repayment: by installments or bullet payment; in accordance with the income pattern.

Advantages of solidarity group lending

• Simplified procedure, reduced number of documents
• Loans are tailored to the business’ necessities, regardless of the ammount size
• Loan request form is simple, written in an accessible language
• Posibility to access the loan at any moment
• No penalties for early reimbursement
• Flexible reimbursement scheme, adjusted to the client’s business
• Quartely interest payment
• Posibility to begin and develop the credit history
• Posibility to raise the loan amount for the next year, of course with the condition to follow the reimbursement scheme. For the first year, the maximum loan amount will be of 5 000 MDL, for the second – 10 000 MDL, while for the third – 15 000 MDL.
• The group members able to work with loans over 15 000 MDL are encouraged to apply for other MICROINVEST products, such as individual loans or venture capital.
• Accounting and bookiping procedures are simple, not requiring special competencies
• no other outlays are required to be made when obtaining group membership or accessing subsequent loans.

Required documents

Loan guarantees