In this type of savings group, the participants deposit their savings each week into a common pool of funds that is then available to be loaned out to participants of their own savings group. Participants make an application to the group for a loan. Those receiving loans are charged interest on the outstanding balance of their loan until it is repaid. Many participants use the loans from the savings group to start a small business. These groups generally have a six-month savings cycle. At the end of the savings cycle each participant gets their funds back. They can then withdraw their funds or place them back into the loan pool.