There are several strategies or operational methodologies by which the company delivers its services to the economically disadvantaged.  The common ones in use include Individual Loan and Group Lending schemes.   

Individual Lending Methodology

This is where individuals apply to the SAT for loan consideration.  This method is not different from the normal lending systems in most of the commercial banks except that clients go through orientation and/or business management training before loans are granted.  Unlike the commercial banks where collateral is a prerequisite, this is not so in Sinapi.  However, applicants provide guarantors as security against nonpayment of loans.

Group Lending Methodology

The is also where a well organized group of economically disadvantaged but active individuals acting under the principle of co-guarantee apply for small loans and repay as a group on installments within a given period of time, normally four to six months.  Trust Bank is often used to represent group lending and there are other forms of group lending methodologies, which include solidarity (smaller in number than trust banks) and inventory group lending.

These methods have been used, tested and proven to be suitable for providing micro-credit services to the poor in Sinapi, Ghana and other parts of the world.  However in Sinapi, these methods are constantly subject to revision to reflect the changing demand in the industry and to provide demand-driven services to the poor.

Solidarity Group

Solidarity Groups are designed for clients who have successfully repaid at least 4 Trust Bank loans and who desire a smaller group atmosphere (groups’ average five clients) and more flexible terms.  Solidarity Group loans, like Trust Bank loans require the mutual cross-guarantee of all group members.