What are the advantages and disadvantages of group based lending?

Group-based lending offers several advantages, including increased borrower accountability, as group members support each other in meeting repayment obligations, and lower transaction costs for lenders due to smaller loan sizes and reduced individual assessments. However, disadvantages include the risk of peer pressure and social dynamics potentially leading to conflicts, as well as the possibility that less reliable members can jeopardize the entire group's loan eligibility. Additionally, group lending may limit access for those who prefer or require individual loans, potentially excluding more vulnerable borrowers.