The guarantee of Communal Banking or ¨Village Banking 2.0¨ is the promise of solidarity. If one member fails to repay his loan, the rest of the group will divide the debt equally amongst themselves. Groups contain a minimum of 9 members and a maximum of 25.

In Village Banking, the loan amounts are between HNL 1,000 and HNL 12,000 per member and groups have up to 12 months to pay.

One cycle in VB2.0 consists of 5 group meetings:

  • Information meeting
  • Commitment session
  • Approval meeting
  • Disbursement meeting
  • Monthly payment meetings


  • Each group shall have between 9 and 25 members
  • Each group shall select its own members
  • Each group must elect a leader
  • Each group member must have his or her own business and household