MSME Finance All Projects

Projects

  • Design and roll-out of credit products with non-bank financial institutions in India

    Michael and Susan Dell Foundation has commissioned MicroSave to support select non-bank financial institutions develop MSME strategies, specifically ‘Urban Micro Enterprises’, in order to increase outreach to this sector in a financially sustainable manner. Specifically, it would assist the partners to:
     

    • Formulate their MSME strategy, including identification of target segment within the Urban Micro Enterprises sector and making financial projections for the business unit
    • Design product and solutions to meet the target segment’s needs in a financially sustainable manner
    • Design processes and systems, including a credit scoring mechanism, for efficient management of the business unit
    • Build capacity of the institution to distribute these products in a viable manner

  • Strengthening internal audit systems of a Vietnam-based microfinance institution

    In 2015, MicroSave, along with Vietnam-based consulting firm VietED, was commissioned to support Tinh Thuong (TYM), a microfinance institution in Vietnam, to strengthen the credit underwriting and internal audit systems of their MSE products. Specifically, the team is working to:
     

    • Develop strong credit underwriting policies and procedures, and a trainers’ toolkit for capability building of staff members to implement these refined policies
    • Design a credit scoring tool for TYM, in order to improve efficiency and reduce subjectivity in the underwriting process
    • Develop their internal audit manual, processes and tools for early detection, and reporting of different types of risks
    • Form an audit committee with a clearly defined structure, individual roles and responsibilities, and a reporting framework for the same
    • Conduct training of staff members involved in internal audit to ensure effectiveness of proposed risk management approach
     

  • Advisory services to a microfinance institution in Myanmar

    Myanmar Microfinance Project was launched by IFC in 2014 to improve financial access to low-income households by enhancing the capacities of the microfinance sector at the institutional levels. In this context, IFC commissioned MicroSave to provide advisory services to Proximity Finance, an NGO MFI, to design an enterprise loan product, for which the MicroSave team undertook the following tasks
     
    • Conducted market research to appraise the enterprise lending landscape and identify gaps in the market
    • Developed a product concept for a loan product and refined it to design the final product
    • Designed processes, including lending and delivery methodology, and produced a credit manual and an operations manual
    • Established credit underwriting, risk, control, accounting, audit and review functions
    • Developed training manuals for institutional capability building, and trained the staff
    • Designed communication material for all staff (head office, back office and front office)

  • Refining Product Offerings for MSME Markets in Uganda

    MicroSave is supporting a leading Ugandan microfinance bank to enhance their position in the SME markets through understanding the market and refining/developing a new product that addresses both the institutional and client needs. The main objective of this project is to understand the financing needs of the SME sector in Uganda, review the current SME offering, carry out a diagnostic assessment of the bank, identify and address the challenges and refine/develop a suitable SME loan product for piloting and rollout. MicroSave supported the bank to define/develop/review SME loan offerings and profitability including SME loan concept and prototype; business case simulations for SME loan profitability; SME loan description, policies, terms and conditions; selection criteria; and credit methodology. The project is in its pilot phase now.

  • Prospecting Opportunities for Gender based Finance and Energy Eefficiency for MSMEs in India

    IFC commissioned MicroSave to sensitise the senior management team of banks, non-banking financial institutions and microfinance institutions in India, through a series of focussed workshops, about the opportunities, benefits and returns as well as challenges in expanding financing to the women-owned MSMEs and financing energy efficient technologies for SMEs in India. As pre-workshop requirements, we conducted desk-based research and a comprehensive diagnostic study of needs of women-owned MSMEs as well as for financing energy efficient technologies for MSMEs backed by feedback from relevant stakeholders and opinion leaders. We organised a workshop under the aegis of IFC on the issues of finance to present our analysis and develop a future roadmap for FIs in India that was attended by representatives from 16 banks. 

  • SME Strategy in the Philippines

    In the year 2009-10, during a period of mergers and transition, MicroSave supported OK Bank to develop a business plan to work with MFIs in unsaturated SME loan markets. Our interventions helped bank achieve a US$6 million portfolio, serving more than 5,000 MSMEs within a year—and also helped reduce the bank’s operating costs ~500 basis points. In year 2013, when bank is undergoing a major makeover to achieve its vision to be the market leader in microfinance in the Philippines, the bank has again commissioned MicroSave. We supported the bank to implement the strategy through new product development, product delivery process including loan origination and disbursement using technology led solutions, credit scoring systems, restructuring HR, finance and administration systems, and, marketing. 

  • Market Study of MSMEs in India

    Au Financiers, a leading non- banking financial corporation in India, invested in by International Finance Corporation sought to assess the MSME financing needs and supply gaps in its areas of operation and develop product(s) to cater to the identified needs. MicroSave was contracted to conduct this comprehensive study in 3 states, with 250 clients including existing, potential and drop out clients of the corporation. To deliver the assignment we conducted a thorough desk research and subsequent market assessment on status of MSME financing in the three states of Rajasthan, Gujarat and Maharashtra. We analysed the findings and provided recommendation on products and MSME financing market expansion strategies. The research was conducted in 10 cities across 3 days with 250 MSME in just 10 days.  

  • Financial Literacy Module for MSME, India

    Vistaar is a financial institution focused on providing institutional credit to emerging MSMEs. It planned to offer non-financial services to its customers to enhance their financial management skills. Vistaar commissioned MicroSave to develop the non-financial services package for customers in form of a financial literacy module on financial assessments, health borrowings and credit history. We conducted need assessment, designed curriculum and developed a short animation video that was used as a training tool. The focus of the design was to develop content and sessions that translate directly into an experience leading to a behavioural change. Thus, we implemented the same using field staff as the business mentors as well to entrepreneurs to help them adopt the change.

  • Financial Literacy Toolbox Project, Kenya

    MicroSave supported Finance Alliance for Sustainable Trade  (FAST) in its journey to strengthen the financial, accounting and other related areas for SMEs under ‘The Financial Literacy Toolbox Project’ through review of existing material, development of the Toolbox, testing and refinement. The toolbox aims to strengthen the financial, costing, risk management, and accounting management literacy of SMEs involved in agribusiness in Kenya. The Toolbox will be composed of comprehensive training materials tailored to the specific needs of the management in the sector. Toolbox includes participant and trainer’s manual, power point presentations, handouts, exercise and videos.

  • Evaluation of MSME Financing Programme, India and Sri Lanka

    MicroSave conducted a mixed methods evaluation of FMO (Dutch Development Bank)’s MASSIF Programme in Sri Lanka and India in collaboration with Oxford Policy Management. The focus of the evaluation was on assessing the achievement of programme objectives namely, poverty alleviation, financial sector development, and implementation of good governance principles. We used a theory based change methodology to identify the causal links from the outputs to the outcome and impact stage and triangulated these with carefully collected self- attributed data (e.g. from intermediaries and clients), discussions with other stakeholders (such as central bank and other market observers) as well secondary literature.

    Click here to know more about the project. 

  • Bridge Loans in India

    KGFS (Kshetriya Gramin Financial Services India), a ‘local financial institution’ (LFI) promoted by IFMR Trust,  commissioned MicroSave to design an SME working-capital loan product and an SME term-loan product to bridge gaps in financing for ~300 SMEs. We based the product design on a scoping study of five prominent industries in Tamil Nadu, Orissa, and Uttarakhand to assess the potential market size, current product and service offerings, delivery channels, and possible problems.

  • SME Deposit Mobilisation in Bangladesh

    The International Finance Corporation’s (IFC) Small Enterprise Development Fund has asked MicroSave to assess Bangladeshi SMEs’ needs for better access to deposits and credit. This detailed scoping and survey report will help determine whether or not inexpensive, accessible accountscan provide small amounts of short-term working capital to ease payroll, tax, foreign exchange, and other cash demands. It will also explore if such accountscould be bundled together to form a business-management solution rather than savings only. The survey includes quantitative and qualitative questionnaires with 400 SMEs in Dhaka & Chittagong, plus interviews with banks, financial institutions, technology service providers, and mobile-banking initiatives.

  • Business Assessment and Analysis in Papua New Guinea

    Esso Highlands Ltd, along with the Institute of Banking and Business Management’s Enterprise Centre (EC) commissioned MicroSave to conduct business assessments to ensure their MSME candidates met the minimum standards set by Esso Highlands for the PNG LNG Project in terms of management, documented systems, and processes. We have developed an evaluation matrix to review SME candidates’ governance, business and financial management, HR, and marketing.

  • MSME Market Demand in Rwanda

    A Rwandese bank with a strong microfinance presence (who prefers to remain anonymous) wanted a stronger SME portfolio. MicroSave’s role was to identify key segments and develop customised financial products for them. We first developed an SME strategy (including mission, products, services, customers, risks, results, and structure). We then mapped the market demand and supply for financing, developed financing product and identified four low-risk segments with high demand. We also helped with SME loan descriptions, policies, selection criteria and credit scoring, and credit methodology, including collateral management.

  • SME Strategy in the Philippines

    During a period of mergers and transition, MicroSave supported OK Bank to develop a business plan to work with MFIs in unsaturated SME loan markets. We conducted qualitative research with 150 MSMEs across Central and Eastern Visayas, Panay, and Luzon and then, based on these findings, worked on the product design, cost analysis, market positioning and branding for individual lending up to US$300 for micro-entrepreneurs and enterprise-lending from US$300-10,000 for SMEs. These efforts helped the bank achieve a US$6 million portfolio, serving more than 5,000 MSMEs within a year—and also helped reduce the bank’s operating costs ~500 basis points.

  • Loan Programme in India

    Utkarsh Micro Finance Private Limited,a Non-Banking Finance Company (NBFC), services the Uttar Pradesh and Bihar regions in India and offers micro-enterprise loans to low-income customers. The IFC has contracted MicroSave to support this MSME (micro-small-medium enterprise) loan programme with institutional readiness assessment, strategic planning, capacity building for the institution and staff, pilot testing, and onsite implementation support.  We also address policies, procedures, systems and operations.

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