Editing Microcredit (section)

===Group lending===

Though early microcredit institutions such as Jobra and [[Grameen Bank]] initially focused on individual lending, group lending approaches to microcredit were present as early as the 1970s through the use of solidarity circles.<ref name="Armendariz 2005">{{cite book|last=Armendariz|first=Beatriz|title=The Economics of Microfinance|year=2005|publisher=The MIT Press|location=Cambridge, Mass}}</ref>  These groups provide one another with mutual encouragement, information, and assistance in times of need, though loans remain the responsibility of individuals.<ref>{{cite web |url=http://www.peopleweaver.com/projects/MicroCredit/meetings/solidarity_circle/ |title=Archived copy |access-date=2014-07-30 |url-status=dead |archive-url=https://web.archive.org/web/20090106185156/http://www.peopleweaver.com/projects/MicroCredit/meetings/solidarity_circle/ |archive-date=2009-01-06 }}</ref><ref>{{cite news|last1=Minilening uitleg|title=Wat is een minilening ?|url=http://www.goedkopeminilening.nl/wat-is-een-minilening/|access-date=16 December 2016|work=Minilening|language=nl-NL|archive-date=December 21, 2016|archive-url=https://web.archive.org/web/20161221014212/http://www.goedkopeminilening.nl/wat-is-een-minilening/|url-status=live}}</ref> The use of group-lending was motivated by [[economics of scale]], as the costs associated with monitoring loans and enforcing repayment are significantly lower when credit is distributed to groups rather than individuals.<ref name="Armendariz 2005"/>  Often, the loan to one participant in group-lending depends upon the successful repayment from another member, thus transferring repayment responsibility off of microcredit institutions to loan recipients.<ref name="Armendariz 2005"/>