Group lending methodology is a credit with education product for making micro loans to target clients. Clients are organized into cell groups averaging fifteen members who cross-guarantee each other's loans. The product is a development-intensive one designed to cater for the business needs of micro entrepreneurs. Growth in loan sizes occurs with the completion of each successful loan cycle. At the beginning of the loan cycle, the potential applicant is assessed together with her group leader. The tremendous amount of goodwill built on Christian trust enhances group dynamism. As at 2016 about 2,800 micro-entrepreneurs in the Global Evangelical Church, of which 80% are women, have benefited from the disbursement of about 10.6 million Ghana Cedis. The female clients are now economically empowered to meet the education and health needs of their families and also contribute to the development of their local congregations, the church and their communities at large. The micro-enterprise group loan requires the following processes:
Training is a pre-requisite for solidarity group loan granting to ensure financial discipline among group members.
Group training in the Sogakofe Presbytery
Group level leadership training and capacity building is crucial in the solidarity group lending methodology of GIF. The Group Leaders are trained to collect loan repayments and record accounting transactions of their members. Leaders are rewarded accordingly for a successful supervision of a repayment cycle.
Loan disbursement is done in a transparent manner. It is always supervised by the GIF branch staff made-up of the Manager, Credit officer and Loan Officer on one hand and the Group leader and the assistant on the other hand. It is compulsory for all members of the group to be present to witness the disbursement exercise.
Accra Branch team supervising loan disbursement at a Group meeting.
