Group Lending Methodology
Magmoaaty Loan (My Group in Arabic)
This program is directed to female-headed households located in disadvantaged areas. This target group has traditionally been found to have less access to credit than any other group.
Magmoaaty is designed to help women on a neighborhood level to start income-generating activities or to expand existing businesses. Loans are extended using the Group Lending Methodology, where individual loans are provided to each member of a group of women. Each group consists of five women who together guarantee loan repayment. If one member of the group defaults on the loan repayment, the other members are obligated to repay in her stead.
Magmoaaty’s starting loan size reaches 1,500 EGP, with the potential for subsequent larger loans up to a maximum of 5,000 EGP. If clients demonstrate their efficient use of the loans, are able to expand their business and demonstrate its sustainability, they may be eligible for a loan under the Individual Lending Methodology.
Every Magmoaaty loan comes with Hemayet Lead Microinsurance Program that offers both hospital and life benefits (read more).