| Recognizing that peer-lending groups are a community resource that extends beyond the purposes of microfinance, this study sought to understand how loans and group interaction with lending officers influences the trust and solidarity within peer-lending groups. The study explored individuals' perceptions of group solidarity and trust, using semi-structured, open-ended interviews and observation as the primary means of data collection. Twenty-six participants (22 women and 4 men) from five different lending groups belonging to two different microfinance organizations took part in this study. Interviews were conducted either at participants' homes or business locations.;Utilizing grounded theory methodology and analysis techniques, the findings indicate that group solidarity and trust between members can be influenced and encouraged through positive group leadership, a supportive group environment that is truly concerned with individual members, and individuals attributing value to group membership. These findings are grounded in a theoretical model of solidarity, which recognizes that group solidarity is a composite of both group worth or what might be called 'attraction to group' and individual relationships among members. As such, trust is central to this entire phenomenon. |
