Solidarity Group Financing Methodology
Fundamentals of group financing:
- The number of members of the solidarity group should be from 3 to 10 members.
- The self-help group should have 11-20 members with a savings deposit representing 20% of the total funding amount.
- Each group shall have a president, treasurer and secretary delegated by the group members.
- Availability of the legal formula for the formation of the group (partnership contract or agreement).
- A group can include two or more people from one family.
- An account is opened for the group in the company with the signatures of the three officers.
- The responsibility to pay the financing shall be a joint responsibility.
- Approval of the comprehensive insurance of the project and that it is parallel to the implementation.
Required Documents:
- Funding application signed by the beneficiary (with the signatures of the three officers) stating the purpose and amount required for financing.
- A copy of a valid ID for the three officers and for each group member (national card / passport / driver's license / military card) + national number.
- A recent photo of the three officers and members of the group.
- Residence certificate for the three officers and group members, or renewed upon execution.
- Insurance request (upon execution).
- An economic feasibility study for the required project.
- An initial invoice in favor of Erada Microfinance Company, to be renewed upon execution.
- A copy of the lease contract/hosting contract/ownership certificate/certificate of possession approved by an official body
- A commercial license or an activity practice certificate from an approved body
