Village Banking is a microcredit methodology where groups of low-income entrepreneurs who come together to share and guarantee one another’s loans—became engines of development. It also encourages neighbors to support each other while growing their businesses; these mutual support groups can help invigorate entire communities. It is an informal self-help support group of 20-30 members, predominantly female heads-of-household. In a normal village bank about 50% of all new members entering the program will be severely poor—representing families with a daily per-capita expenditure (DPCE) of less than US$1; the rest are moderately poor (DPCE=$1–2/day) or non-poor (DPCE >$2).
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