microfinance evaluating group lending as a practice | cloud lending inc
DESCRIPTION
Group lending was a model created to mitigate the risk of lending money to poor who could not offer any collateral. The global microfinance industry is set to grow at 16.6% over the period of 2012-2016. One of the key contributors to growth will be the focus on untapped markets. With MFIs getting better access to capital, group lending model will continue to be an integral part of the microfinance industry even in the near future.TRANSCRIPT
1. Evaluating group lending as a practice MicroFinance 2. Growth of Microfinance industry over the period of 2012-201616.6% 3. Group Lending Money is lent to a group of people. The group is accountable for the repayments. In an event when a group member is unable to make the repayment, rest of the group makes the repayment. 4. Group Lending Trade-Offs Risk mitigation. Weekly inter-group meetings to share best practices & experiences. Missing synergy can create tension within the group. PROS CONS 5. Loan delinquency in A recent study by Africagrowth Institute found Group lending < Individual lending 6. Future of Group Lending in MFI Recommendations to improve group lending 7. Community driven group membership nomination members of a community form the groups themselves members know each others repayment capacity, thus mitigating the risk further 1.# 8. Training linked lending program link business skills to the lending reduces the gaps in the skillset, abilities improves motivation within a group improves the group synergy 2.# 9. ? Cloud Lending Inc. San Mateo, CA, USA +1-(650) 918-0499 [email protected] www.cloudlendinginc.com Are you reviewing MicroFinance Software Give us a Call... twitter.com/cloudlending facebook.com/cloudlending