M3 Self-help credit

Micro Enterprise
  • By forming a group, people with no access to outside credit can help each other with credit. A group of about 15 people, meeting regularly, could agree to bring to each meeting either a small amount of money or an agreed amount of crop or fruit produce for sale. Each group member would take it in turns to take all that week’s money or produce.


Even this simple system which needs no bank account or training, still needs certain things to succeed. What might these be? Encourage participants to make suggestions. Here are some examples of what needs to be considered: 

  • People will need to trust each other to bring regular payments. 
  • They will need to decide in advance what to do about those who miss their payments.
  • What will they do for example about group members who fall ill, cannot pay but need money urgently? 
  • How will they decide the order of who gets the loan?