Before borrowing, members of a group will typically start depositing small amounts, helping develop a savings habit.
Some micro finance projects in Sri Lanka also teach poor households methods of saving money.
Prime Grameen is a central bank registered non bank finance firm.
Prime Grameen, a part of Ceylinco Group which was hit by a run of bad loans was bought by Prime Lands, a real estate firm which injected capital and re-started lending.
In 2011 Ram Rating Lanka gave it a speculative 'B-' rating and upgraded it to 'B' in February 2013, saying the firm had made a small profit in the half year but still had a legacy of non performing loans of 25 percent.
But down from 58 percent on the back of recoveries and new loan growth it also had had 418 million rupees in equity and risk weighted capital of 10.92 percent by the end of the 2012 financial year, the rating agency said.
The company on Thursday launched a minors' account called 'Sip Saviya', which they say will help w