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The financial loan procedure was centered on a mortgage procedure that was simplified. The loans survived one year, payments were reimbursed regular as well as the interest charge was 20% (simple interest). Each mortgage was associated with a number of five individuals from the village that supplied obligation to maintain the individuals on-track for reimbursement, . One of the components that Grameen utilized was collection lending‘s concept where sets of inadequate individuals served for each different as guarantors.
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