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Definition of Group Lending: A lending mechanism which allows a group of individuals - often called a solidarity group to provide collateral or loan guarantee . This paper focuses on how MFI decisions to offer either group or individual loans depend on loan size, refinancing conditions and competitive pressure in the microfinance market. MFIs have been mostly associated with group lending, but are increasingly offering individual loans.
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Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders. Peer-to-peer (P2P) lending enables an individual to obtain a loan directly from another individual, cutting out the traditional bank as the.
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