The borrowers must form five-member groups that, along with the bank's field workers, closely supervise the loans. Peer pressure substitutes for collateral because the group's first two borrowers have to start repaying the principal plus interest over a six-week period before the other members can take out loans. The interest rate is fixed at 16 percent.
The first two people of the borrowing group have to begin repaying the principal plus a fixed 16% interest over a six-week period.
( z1 obligate :ARG2 ( z2 begin :ARG0 ( z3 person :quant 2 :ord ( z4 ordinal-entity :value 1 ) :ARG1-of ( z5 include :ARG2 ( z6 group :ARG0-of ( z7 borrow ) ) ) ) :ARG1 ( z8 repay :ARG0 z3 :ARG1 ( z9 principal ) :ARG3 ( z10 interest :mod ( z11 percentage-entity :value 16 ) :ARG1-of ( z12 fix ) ) :duration ( z13 temporal-quantity :quant 6 :unit ( z14 week ) ) ) ) )