Group Loan (GL) aims to help clients run and to grow their micro or small businesses. The target clients should have or operate a micro or small business and require up to 8,000,000 riels or its equivalent for working capital or acquisition of fixed assets. Prospective clients are encouraged to form joint-liability groups of 2-7 members among their community members with similar needs and apply for a GL.
LOLC’s Group Loan offers clients a number of key benefits:
- No requirement of physical collateral,
- Convenient option to apply for and repay the loan at nearest LOLC office or at your community or any money transfer agents which has been incorporated with LOLC,
- A reasonable interest rate, calculated based on outstanding balance,
- Flexible loan terms and repayment plan that adapt to your personal or business need,
- Easy and flexible group formation.
GL is designed for adapting to the needs of our clients by allowing several options of repayment mode:
- Fixed installment (monthly interest and principal repayment),
- Semi-balloon (monthly interest repayment and the principal repayment based on cash flow analysis and mutual agreement),
- Balloon (monthly interest repayment and the principal payment at the end of the contract),
- Annuity, or
- Flexible annuity.