The loan methodology, regardless of group or individual lending, can be associated with the organization's performance. Micro Finance has produced inventions in lending which can overcome the adverse selection together with the moral hazard challenges. Group lending may possibly raise the repayment rate. This is so because ground lending results to assortative grouping which is, that the best credit risk groups band together naturally , out of the local knowledge of trustworthiness. Micro Finances may have diverse fractions of group lending, for instance, a dummy variable shows whether the main loan methodology in the micro finance is to group or individual borrower