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Fri Dec 29, 2006
Churches Credit Union now offering Graheem type loans
The Churches Co-operative Credit Union is offering what it refers to as combo loan opportunities to groups of business oriented persons.
The Combo Business Loan product is patterned off a Graheem bank style of micro-lending programme that originated in Bangladesh.
It is made to self selected groups of borrowers numbering between two and seven persons with loans being accessible to individuals within the group.
However, under the conditions of the arrangement, the entire group would be responsible individually and jointly for repayment of each member's loan.
Manager of the Micro Enterprise Unit, Waldon Wright, says the offer is being driven by the findings that persons tend to establish borrowing groups only with those whom they know and trust.
He said this, along with the instruments of joint liability, helps the credit union to screen out bad loans risks.
Within this context, Mr. Wright said credit unions can offer loans with greater confidence to persons who would normally find it difficult to get a foot in the door of a formal traditional lending institution.
