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All the Microfinance organizations in Honduras seem to follow the Grameen model for lending purposes, in . In this model an organization assigns a number of officers to a community to familiarize with the situations on ground and gather loan applications. Once the loan applications are reviewed they decide on potential borrowers (usually the limit is 5 five people) and form a group of with all them as members. Then they give money to 2 two members of the group (the loan could range from anything between $50 to $5000) and monitor repayments for a two year period. If the two borrowers do return the money on time, they extend the loans to everybody else in the group, this dynamics . This creates a peer pressure among the dynamic that encourage borrowers to make payments on time.
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