Encouraging savings habits among borrowers and supporting a group lending model, ARS-Bangladesh organizes community groups where members can save and access group-based loans.
Primarily low-income individuals, especially women are the Target Group in this Model. The group lending model provides access to smaller loans initially, and as the group’s repayment reliability strengthens, they qualify for larger loans. Members contribute to a group savings fund, which serves as a financial buffer and a source of credit. This model not only fosters financial discipline but also promotes social cohesion, peer support, and shared responsibility in loan repayments.