Over the last decades, group lending has had a signifificant impact on poor communities' access

to sources of fifinance in many developing countries.

(a)

Describe the main characteristics of group lending as compared to standard lending to

individuals.

(20% of the marks)

(b)

Describe and explain the main rationales that make group lending more effffective than

"individual" lending at securing access to fifinance to borrowers with weak balance sheets.

(80% of the marks)