The micro-credit industry currently has a repayment rate of 95-98% worldwide. This astounding success in repayment is attributed to the strong social cohesion prevalent in the developing world where the role of microcredit is significant. The dynamic social structures and inter-dependecies that exist in these communities encourage borrowers to repay the loans promptly, besides supporting each other. Members of self-help groups or joint liability groups to whom loans are extended, contribute to a common group fund which is also used to make repayments on behalf of individuals unable to make an occasional repayment on time due to financial pressures.