SML will initiate the formation of the groups that include people who know each other and have similar interests such as family members, people doing similar business or doing business in the same place, “wakulima”, “wafanyabiashara”, “mafundi vyerehani”, “wafanyakazi”, etc. They must have a project that is a source of loan repayment. The group members will choose themselves basing on their knowledge of each other and each members ability to pay the loans. This means screening is done by the members themselves. If one member defaults, the rest will pay for the defaulting member.

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