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Group guarantee—also known as or joint liability—is the basic principle of PMI Micro-lending programs. This refers to a program where clients form solidarity groups of between 5 and 10 members who support one another. Each member is responsible for paying back the loans of their fellow group members if a loan becomes delinquent. W hen a client is able to provide for a collateral, she or he has the option of borrowing though the group or independently.


