Group loans have quietly transformed livelihoods across Tamil Nadu — powering everything from tailoring units to dairy farms run by women. If you belong to a Self-Help Group (SHG) or want to form one, here's exactly how a YoursPay group loan works.
What Is a Group Loan?
A group loan is credit given to a Joint Liability Group (JLG) of 5 to 20 members — usually women — who guarantee each other's repayment. There is no individual collateral. The group's mutual trust is the security. Read the NABARD SHG framework for the national context.
Who Can Form a Group?
- 5 to 20 women from the same neighbourhood
- Age 18-58
- Not related to each other by blood or marriage (in the same group)
- Regular income source or income-generating idea
Loan Amount and Tenure
First cycle: ₹15,000 – ₹35,000 per member. Successful repayment unlocks larger amounts (up to ₹60,000+) in later cycles. Typical tenure: 12 to 24 months, repaid in equal weekly or monthly instalments.
Interest Rate
Group loans are microfinance loans and follow RBI microfinance regulations. Effective interest is disclosed upfront on the loan card — no hidden processing fee stacks.
The Center Meeting: Where the Magic Happens
Every week, the group meets at a fixed spot. The YoursPay field officer collects EMI in the presence of all members. Peer pressure + peer support = >98% on-time repayment across our network.
What Members Use the Loan For
- Tailoring machines and inventory
- Buffalo / goat / poultry purchase
- Small provision stores
- Beauty parlours and idli / tiffin shops
- Handloom raw material
How to Apply
Contact any YoursPay branch in Salem, Attur or Dharmapuri. A field officer visits your area, helps you form or verify the group and completes documentation within a week.
Frequently Asked Questions
Do we need any collateral for a group loan?
No. Group loans are unsecured — the joint liability of members is the security.
What if one member defaults?
The remaining members are expected to cover the shortfall. This is why picking committed group members is critical.
Can men join a group loan?
The YoursPay group loan programme currently focuses on women SHGs, aligned with the wider Indian SHG movement.
Talk to a YoursPay advisor — visit our Hasthampatti head office in Salem or call +91 98945 76238. First consultation is always free.