Many low-income individuals don’t have access to traditional forms of credit. Getting credit without a credit history, with a poor credit history, can also be a challenge. A small loan – advanced based on the character of the borrower and the strength of the case for a loan – is a good way to begin building a solid credit history.
After saving regularly for 3 months or more, members can apply for loans. The pooled savings of members’ makes it easier for persons to receive small loans are reasonable interest rates.