the borrowers must construct five - part groups that , along with the bank ' s technical workers , closely supervise the borrow . peer pressure substitutes for collateral because the group ' s first two borrowers have to start repaid the principal or interest over a six - week window before the other three can take out loans . the interest level is fixed at 16 percent .
The first two borrowers must start repaying the principal plus interest over a six-week period.