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Hi, today I will share on the key dynamics of the group. The members. #howtovillagebank
They are typically supposed to be people from the same community or background, preferably friends or family who’s address, income or occupation, businesses engaged in, their family’s home (follow up defaults) and their assets.(even just a bed of things come to the worst lol).
So the decision to start a group can be made by a group of friends taking into accounts all these details and add a few members. These members added are guaranteed by a member of the group. In fact no one can be part of the group without having a guarantor.
If you default in repaying a loan, the person that introduced you to the group pays. So all members must actively take part in carrying out interviews for people you bring into the group. They must ask important questions to ensure you are sure that the person isn’t a bad debt.
Social funds: these are generated for the group to provide refreshments at their routine meetings, for members emergencies and birthdays. This money is kept separate from the other group funds.
Today I will also begin sharing on the constitution, this is the heart of the village banking groups. I will share on this to help you think about it’s vital components and how you can tailor them to your groups.
I am only sharing my experiences if you have a different opinion you can comment and perhaps others may learn from it too.
