the borrowers must constitute seven - member bands that , collectively with the band ' s specialist workers , intimately supervise the borrow . peer pressure substitutes for mortgage because the unit ' s first two borrowers have to start repaying the principal plus interest over a six - weeks period before the other members can take out funds . the bond rate is fixed at 16 percent .
The first two borrowers must start repaying the principal plus interest over a six-week period.