The video describes the list of activities a loan officer is expected to do and the details that need to be recorded at Home Visit. For many newcomers to microfinance, the Home Visit is probably the most unconventional part of the loan appraisal in MFIs. What does a credit officer look at when he or she visits the client’s home? What questions does he ask? Which family members does he want to meet? For details, please join our camera on an example of a Home Visit.
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Loan Appraisal: Visiting Client’s Business
In this video, MicroSave explains the Bishara Imara Lending Cycle, an individual loan product of Equity Bank. This episode discusses the first few steps of the lending cycle, namely, loan application, loan appraisal and analysis. After filling of the loan application, the loan officer visits the business premise and residence of the client for loan appraisal and analysis. The Loan Appraisal process is something that requires a considerable amount of skill and knowledge from the loan officer. Further, the loan officer also carries out background research before moving on to the next step of the lending cycle.
Lending Cycle: New Customer Identification Filter
In this video, Head of Microfinance at International Finance Corporation (IFC), Martin Holtman, discusses the New Customer Identification and Filter Process of lending cycle of Individual Loan Product of Equity Bank. The concept of Lending Cycle is an excellent training tool for new loan officers and other staff engaged in lending operations. Using the individual loan product of Equity Bank Kenya as an illustrative example, the video moves through the first steps of the Lending Cycle, namely New Customer Introduction and Filter.
Individual Lending Product Features: Equity Bank
In this video, Equity Bank team shares the challenges faced while developing Biashara Imara – an individual loan product in Kenya for people with low earnings – and what steps did they take to overcome the initial glitch. Further the branch manager attributes Biashara Imara’s success on its excellent performance based on various parameters such as growth, repayment and portfolio. The Equity bank team also outlines the product features of Biashara Imara and elaborate the key marketing strategy adopted to promote the loan product.
Microfinance – Challenges and Response
This note briefly discusses four major concerns/opinions voiced by different stakeholders, namely the promoters, the beneficiaries and the general public. First is the justification for a new breed of financial institutions in order to meet the varied financial needs of the poor. Secondly, the cost of providing financial services by MFIs which are largely dependent on nature of services they provide (doorstep) and the cost of capital for them. Third concerns are on the nature and types of services they could provide that includes “plus” such as insurance and remittances which adds to their administration cost. The final one is on getting trained human resources, who have understanding of both banking as well as social development.
MicroSave project completion report for FSD Kenya
The Market-led Microfinance Project or MicroSave started in 1998 as a four-year project funded by the Financial Sector Deepening Kenya (FSD Kenya) or the Department for International Development (DFID), the Consultative Group to Assist the Poor (CGAP), the Austrian Development Agency (ADA) and the Norwegian Agency for Development Cooperation (NORAD). MicroSave was converted into a commercial service-providing organization after its final phase (2004–2007). This paper assesses the performance of its final phase and overall experience over nine years. It also highlights the achievements of the project and the lessons learned, and critically analyzes the strategy employed for the development of MicroSave.