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Today, group lending is just one element that makes microfinance different from conventional banking.
Many of these other new ideas are also used by institutions practicing group lending. But the mechanisms are not intrinsically linked, and institutions are increasingly finding that they can pick and choose different elements. A case in point is “progressive lending,” which is a staple of the “classic” Grameen Bank model but which does not hinge on group lending per Se. Progressive lending refers to the practice of promising larger and larger loans for groups and individuals in good standing...
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