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Group Loan

Group Loan

The group size should be a minimum of 5 and a maximum of 20 members.

  • Group must have been together for at least  two months.
  • There should be a group interest tailored towards doing various/the same business, living in the same area or doing business within the same environment.
  • Each member of the group should have an account as well as a group account.
  • There should be a document from the court or Notary Public giving the group a legal backing.
  • All group loans should be cross-guaranteed by ALL the members of the group.
  • The Chairperson (and the Secretary as a backup) of the group will be personally responsible for ensuring that loan repayments are made when due.
  • Each group member must agree to a compulsory savings of at least 1% of the loan amount weekly.
  • Loan repayment must be daily or weekly.
  • Loan tenor shall not exceed 4 months.
  • The group should have a cash contribution of between 10 – 30% of the loan amount in the group account before disbursement.
  • Collateral for group loans should be joint and several liability of all borrowing members, personal guarantee of the chairman and the secretary and additional guarantor outside the group members.
  • The loan officer must verify the business and residential addresses of all the group members as well the outside guarantors.
  • One of the guarantors for female group members should be the husband.
  • Management and processing fees for group loans should not be less than 2% flat of the loan amount.
  • Maximum amount to be disbursed to any group may not be more than 5% of shareholders fund.


Group Lending Procedures


  • Account officer identifies a group, with strong leadership structure and commitment to meetings by members.
  • With the help of the branch manager and/or group desk member, they are put through our group loan policy and procedures during one of their meetings.
  • The group opens account with the bank once they are okay with our policies and procedures. And gives a period of 3 weeks for training, compulsory weekly savings and documentations for loan processing.
  • During this 3 weeks period, the account officer must study the group in order to appraise them properly if they have the capacity to repay, their commitment to meetings, their line of business and character of members.

  • The branch/centre manager presents the loan for approval, after completion of documentation and KYC. Please note that shops and residences of the members must have been visited by the account officer and signed off by the branch/centre manager. Also, stock taking and home appliances documentation with a pledge by the individual member that in the event of default, the bank can make recourse to such items in recovering the loan should be put in place, duly signed by each member. This will serve as additional comfort for the bank, aside the J&SG and external guarantor. The branch/centre manager MUST visit the group in one of their meetings before presenting for approval. Additional/Independent visits by the Head of Credit and/or Auditor will serve as a control measure.
  • Account officer can leverage on existing groups or members to get new groups or members on board, starting with weekly savings for at least 30 days.
  • After approval, disbursement will be done the following meeting day, after the 3 weeks period is completed.

Loan Calculator


Estimated Monthly Payments



Estimated Monthly Payments




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