After SCCI has selected an area and conducted informational sessions with its residents, interested women form self-selected five member groups to serve as guarantors for each other. This process is called Group Formation. Experience has shown that a five-member group is small enough to effectively enforce group peer pressure and, large enough to cover repayments in case a member needs assistance. Group members must be between the ages of 18 and 50, cannot be related and must live close to one another.

Once a group is formed and meets the minimum requirements, it begins Group Training (GT). GT is a five days schedule consisting of hour-long sessions designed to educate clients on the processes and procedures of SCCI and build a culture of credit discipline. Using innovative, participatory teaching methods, SCCI staff introduces clients to SCCI’ financial products and disbursement

methods. In addition, GT teaches clients the importance of collective responsibility, how to elect group leaders, SCCI pledge and how to sign their name. During the training period, SCCI staff also collects quantitative data in a printed format with KYC on each client to make sure that they qualify for the program and record base-line information for future analysis. On the fifth day, clients take the Group Recognition Test (GRT) and they officially accept as SCCI’ client after successfully completing the test.

As additional groups are formed within a single area, a Center emerges. During center Formation, groups are combined to form a center of 2 to 5 groups or 10 to 25 clients. The center is responsible for the repayment of all groups, creating a dual joint liability system. If one group defaults the rest of the center must repay. Once a center is formed, Financial Transactions begin the following week.