All you need to Know before Taking Group Loan in Nadia
Also known as group lending, a Group loan is provided to any groups of targeted clients for utilizing as capital in their micro-scale business and other income-generating activities for improvising their livelihood. If you are interested in Group Loan in Nadia, below are some important things that you need to be aware of compulsorily.
Advantages of group loan-
- No requirement for security
- Guarantors are the other members of the group
- Simplistic approach to the business analysis
Requirements-
At the time of applying for the Group Loan in Nadia, you must guarantee the listed requirements.
- Majority aged 18-65 years
- 2-3 members each group with the group leader selection
- Permanent residence
- Same purpose in using the loan
- Have legal business and regular earnings
- Have a fair record and be reliable
- Have sufficient ability to repay the loan amount
Documents required-
- ID card, family book, passport, residential book, birth certificate
- Land certificate, term deposit certificate
- Other credentials on the income and expenses of the business or family
Are there any shortcomings?
- There is a high risk of falling into the situation where you need to pay for another member of your group. Unluckily very often there are conditions when the members of the group aren’t well aware of the business financial position of each one. This, in turn, leads to the fact that in addition to the loan, group members will have, also pays the loan to other members if they aren’t able to repay the loan.
- As a rule, a group loan is expensive in comparison to an individual loan.
- The amount and terms of loans aren’t large.
Important things to consider when taking a group loan -
When you get involved in a group loan there are several things to keep in mind so you don’t face any troubles later on because of any single ineffective group member.
1- Ensure that the member added to the group for taking group loan is having better financial status and regular income so that no problem occurs in repaying the loan amount. There should not be the burden of any other group member on others for paying money. In short, don’t settle with one who you feel cannot repay the amount timely.
2- There is no need to settle if a credit expert recommends their buddies. Keep in mind you have to form a group and take trustworthy partners.
Summing up
Keep all the above shared information in mind when taking Group Loan in Nadia.