Related Resources

Institutional Culture and Transformation: From NGOs to Market-led MFIs
The transformation of microfinance NGOs into a more regulated legal form is seen as one of the most effective strategies for achieving scale and sustainability. However, transformation requires a significant change in institutional culture, affecting stakeholders at all levels – from...
146.89 KB
An In-Depth Quantitative Assessment of the Ugandan Microfinance Environment
This document is a part of a quantitative market and competitor environment research based assessment in Uganda. It presents the research objectives, methodology employed and full research findings gathered through the interview process in Jinja, Mukono, Masaka and Kampala. The key findings...
616.24 KB

Individual Lending Booklet

Author: MicroSave
Published: February 15, 2011


The Individual Lending Booklet is the fifth publication under the Optimising Performance and Efficiency (OPE) Series. The OPE Series brings together key insights and ideas on specific topics, with clear objective of providing microfinance practitioners with practical and actionable advice.
Most MFIs have started to realise the importance of introducing individual lending, however because it requires a paradigm shift many MFIs struggle to initiate IL programmes. Thus individual lending is in its infancy in many markets worldwide, and institutions are still learning to cope with the challenges and risks of operationalising this product. Some significant issues in introducing individual lending are: increased information asymmetry; absence of group-based guarantees; comparatively higher-value loans; and the resulting higher credit risk. Individual lending requires different processes and systems such as: sophisticated and flexible MIS to gather and analyse client information; and highly skilled staff with ability to conduct detailed due-diligence (to assess the market, management, suppliers, customers of the business to be financed) and prepare realistic cash flow analyses and assess collateral.
This booklet brings together a set of brief publications which extract key lessons from MicroSave's rich expertise and experience, combining these with the views and opinions of leading practitioners.

Tags: Monitoring , Loan repayments , Equity Bank , Individual lending , Product features , Biashara Imara , Multiple borrowing , Loan utilisation check , Loan portfolio , MIS , Risk management , Market led , Institutional change

0 Comment
0 Likes Like
1.57 MB

Leave a Comment