 Keeping application procedures simple, relying on peers to choose credit-worthy

clients.
 Quickly extending credit (often within a week).
 Not requiring records and complex business plans.
 Not asking for guarantees that eliminate most potential candidates (such as
collateral) rather, rely on the effectiveness of the group dynamics.

1. Working initially with existing local economic activities, to reduce un-necessary risks
and costs associated with developing new enterprises and markets;

 Extending small, short-term loans primarily for working capital on simplified

terms (equal and frequent repayments) to test the clients’ commitment to repay,
and the viability of businesses.
 Providing larger loans based on successful repayment (incremental lending).
 Charging a rate of interest that cover all costs (financial, administrative and
operational)
 Involving participation of the clients who take a major role in promoting the
project within the community by forming groups and providing one another with
advice and assistance, reducing costs significantly and developing commitment to
the project and to each other.