Bond of association
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The bond of association or common bond is the social connection among the members of credit unions and co-operative banks. Common bonds substitute for collateral in the early stages of financial syste
These millworkers chartered the first credit union in British Columbia. Powell River, Canada, 1939.
Solidarity lending
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Solidarity lending is a lending practice where small groups borrow collectively and group members encourage one another to repay. It is an important building block of microfinance.
Bond of association
…the members of credit unions and co-operative banks. Common bonds substitute for collateral in the early stages of financial system development. Like solidarity lending, the common bond has since played an important role in facilitating the development of microfinance for poor people. In modern financial systems, common…
Solidarity lending involves collateral-free loans through solidarity groups and village organizations like this one in Bangladesh.