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 borrowers of the group have to start repaying the loan plus interest before the other members can take out loans.
( z1 obligate :ARG2 ( z2 start :ARG0 ( z3 person :quant 2 :ord ( z4 ordinal-entity :value 1 ) :ARG0-of ( z5 borrow :ARG1 ( z6 group ) ) ) :ARG1 ( z7 repay :ARG0 z3 :ARG1 ( z8 and :op ( z9 loan :ARG2 z3 ) :op ( z10 interest ) ) ) :time ( z11 before :op ( z12 possible :ARG1 ( z13 take-out :ARG0 ( z14 person :ARG0-of ( z15 have-org-role :ARG1 z6 :ARG2 ( z16 member ) ) :mod ( z17 other ) ) ) :ARG1 ( z18 loan :ARG2 z14 ) ) ) ) )