Abstract
World researchers have studied various phenomena of loans provided through financial institutions, including a loan strategy with Group Loans. Group Loans are money loans made by a group of people to a microfinance institution. Based on a case study in Nganjuk, East Java, Indonesia, we investigated the phenomena of Group Loans. Group Loans customers in the community are primarily women, and they are generally housewives without having a fixed income unless they receive a stipend from their husbands. Group Loan facilities are provided for women's empowerment, primarily to support productive activities. Unfortunately, these group loans potentially experience problems, especially interms of loan payments. Group members who are not paying debts, wasting money, and borrowing from numerous financial institutions to pay off prior obligations have all been recognised as issues. This study examined methods to anticipate and minimize the risk of Group Loans through the implementation of women's empowerment activities. The proposed method in this study is deemed effective to assist women in avoiding debt owing to Group Loans. This study is expected to be one of the solutions to enhancing women's roles, particularly in minimising the risk of debt through productive activities. • Discussion of methods to examine the phenomena and problems of Group Loans. • Discussion of approach methods to credit agency customers who borrow money in groups. • Methods of exercising women's empowerment in anticipation of Group Loans.