QUICK LINKS
T14 Group Inter-loaning analysis Resources and Services
T14 activities and Analysis
T14 Facilitator's NOTES
T14 NEXT STEPS
T14: Group Inter-loaning Analysis
This activity provides a visual representation of a savings and loaning groups’ overall status, including the reasons for lending or borrowing money between members of a savings and loaning group. The group’s savings fund or common contributions are lent (inter-loaned) for various purposes, such as buying animal feed, paying for service provision, equipment repair and maintenance, purchase of additional animals and other household needs. Reasons for taking loans may have been identified previously through tools such as T13 income, expenditure and credit analysis and may be reviewed in their community action plan if necessary.
| Tool purpose: | Time needed: |
| • To support a community savings group to understand their financial strength, status and potential for long-term sustainability of group savings and loaning activities. • To assess and/or monitor how group savings and loans are being used to improve animal welfare and the lives of animal-owning households. • To give an indication of loan repayments and promote accountability amongst members. • To identify opportunities for additional and/or collective income-generating activities. • To compare changes in how loans are being used (base line to end line). | 2 hours |
| Materials needed: | |
| Materials needed: Chart paper and markers, post-its, cards or any other local materials |
Keyword Search Tags
Project Phase: Implementation Phase, Exit & Evaluation Phase
Approaches for Working With Communities:
Community Development Approach
Behaviour Drivers (COM-B) Behaviour Model:
Opportunity
Project Support:
Participatory Learning and Action Tools, Monitoring and Evaluation
Specific Topics:
Vulnerability / Resilience, Livelihoods, Group Formation / Strengthening
Group inter-loaning analysis
This exercise is used to assess the present status of group members’ loan repayments, thereby providing a social accountability mechanism which encourages group members to repay their loans to the group fund as originally agreed between group members.
Information gained from this activity can help participants decide where collective spending might save them money and therefore reduce their need to borrow from the fund. For example, if many group members are borrowing money to buy animal feed, a common fund could be used to buy animal feed in bulk. The group may wish to arrange vaccinations for all community animals at the same time for a reduced fee or buy resources together in bulk.
Figure T14a Group inter-loaning analysis (template)
Figure T14b Group inter-loaning analysis (sectioned)
Figure T14c Group inter-loaning analysis completed by a community
A savings group analysed the use of money lent from their common savings fund. All members of the group had taken a loan at some point. The circle rings represents:
- Name of group members: Individual names of people who have an outstanding loan
- Purpose of loan: The reason for taking the loan
- Loan amount: Original loan amount and the repayment terms (months to repay)
- Status: the amount still owing and number of months left to repay
In this savings group, most loans were taken by group members to buy animal feed. This exercise helped the group discuss where they could take action collectively for their animals, such as buying feed in bulk at a discounted price.
| Group Inter-Loaning Analysis | |
|---|---|
| Step 1 | Take time at the beginning of the exercise to have an in-depth discussion on the group’s general activities and different projects that they work on together. This will act like an icebreaker and help participants feel more comfortable and willing to share freely before beginning any type of discussion on money or finances. Slowly transition the discussion to focus on financial activities and on inter-loaning. |
| Step 2 | Ask the community helper to draw a small centre in the middle of a piece of chart paper that will represent the group and label it with the group name. Then, have the helper draw four big circles around the centre circle (see figure T14a). Ask the group generally for what purpose they take loans from the savings group. Please note: From here, the conversation will move to the individual level, so ask the group if they feel comfortable with this and give consent to sharing individually. Assure them that the discussion will be kept confidential and that it is for the purpose group learning. Also, advise them that they are not obligated to participate if they do not feel comfortable. You can also mention that this tool has potential to be used to monitor individual progress over time, or to improve or strengthen group loaning activities. Ask members with active loans who would like to volunteer to participate in the activity. Try to have between 6-10 participants. Remind them that this is not an individual analysis, but a group analysis. The facilitator should try to ensure that there is diversity amongst the loan purposes. |
| Step 3 | Ask participants to write their names on separate cards or to identify themselves using different symbols. Put a card on the outside circle labelled ‘name’. Arrange the cards representing each person who has taken a loan around the outside edge of the circle. Then, have the community helper divide the circle into segments according to how many participant names are along the outer circle (e.g. 11 segments for 11 participants) (see figure T14b). Ask participants about the purpose of their loan and have the helper write the purpose on a card. Put a card on the second outer ring labelled ‘purpose’. Add the card representing the purpose in line with the person’s name. Ask participants about the loan amounts taken and repayment periods. Have participants write the amount and period (e.g. 2,000 / 24 months) on a card. Have the community helper put a post-it on the third outer circle labelled ‘amount & period’. Add the cards representing the amount & period in line with each participant’s segment. Finally, ask participants about the loan balances and remaining repayment periods. Have participants write the loan balance and remaining repayment period (e.g. 500 / 2 months) on a card. Have the community helper place the card on the remaining circle labelled ‘loan statuses. Add the cards representing the loan status in line with each participant’s segment. |
| Step 4 | Once the chart is complete, ask the group about their general observations of the final chart. Depending on their responses, you might probe further into the terms and conditions or rules and regulations of the savings group. Guiding questions might include: • What are the criteria for a group member qualifying for loans? (rules & regulations governing group loans) • If defaulting has been identified, ask: what are the reasons for defaulting on loan payments? Ask for a few personal examples. • If defaulting has not been identified, ask participants whether any members have ever defaulted and why? • Are they comfortable with the rules and the terms? If no, what changes are possible? • Has there been a time when a group member needed a loan, and the group was unable to provide it? If yes, why? - What did they do about it individually or as a group? • What strategies are the group currently undertaking to increase their savings and loaning capacity? - What could they do to increase the amounts available for loaning as a group? |
| Step 5 | At the end of the exercise, ask the group to summarise their findings: • Highlight how animals have benefited from the group’s inter-loaning activities. For example, loans taken for: - Animal treatments and health care - Purchasing feed and fodder - Seeking health or welfare service - Materials to build a shelter • How animals could benefit from inter-loaning activities. • How members have benefited from initiating income-generating activities individually or as a group. After this discussion, ask participants what actions they can take from the analysis. Have the community helper record the actions and any specific activities in the community action plan. Make sure to include who will monitor it and a realistic timeline. Support the community by linking them to any necessary stakeholders. Add the outputs of this activity to your project action tracker and any action points to follow up on. |
Facilitation Notes
- This exercise is ideal for a community-based group of animal owners that has been operating for at least one year, with members making regular contributions to a common savings fund and accessing group loans.
- Consider removing the individual names from the outside of the circle and replacing them with symbols or numbers to make those who volunteered feel more comfortable and willing to share during the analysis.
- It is best to do this exercise without referring to the group’s register or ledger of savings and loans. If any queries arise, look at the register together at the end of the exercise and make changes to the chart then if needed.
- Encourage each group member to tell you about their loan amounts themselves. Discourage one particular member or group leader from leading the exercise and talking about or for the other members.
Next Steps
- Revisit the actions and activities in your project action tracker in the next meeting to monitor their progress and what further support is required.
- Repeat the inter-loaning analysis annually to assess changes and promote accountability amongst members.
- If conducted in the exit and evaluation phase and results of the activity have shown that the savings and loaning group is well-functioning, consider carrying out a sustainability mapping exercise to help the group determine whether they can continue without help from the facilitating organization.