What is GRT in Microfinance?
GRT, or Group Recognition Test, is a critical element of microfinance operations, particularly for Joint Liability Groups (JLGs). It serves as a formal assessment to evaluate the readiness of a JLG to access financial services and loans. Let’s delve into the significance of GRT.
Key Aspects of GRT:
- Group Cohesion: GRT assesses the unity and trust among JLG members. A closely-knit group is more likely to succeed in microfinance.
- Understanding of Financial Principles: JLG members are tested on their knowledge of key financial concepts, including interest rates, loan terms, and the consequences of default.
- Operational Procedures: GRT evaluates members’ understanding of the procedures for loan disbursement, repayment, and savings.
