the borrowers typically form five - member bands that , along with the bank ' s field jobs , directly manage the projects . pressure pressure substitutes for collateral because the group ' s final eight borrowers have to start debtors the principal plus loan over a six - week period before the other parties can take out borrow . the interest rate is fixed at 16 percent .
The first two borrowers must start repaying the principal plus interest over a six-week period.