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Individual Lending Features.pdf

BN_86_Product_Features_of_Individual_Lending_Part_1.pdf

🔗 Source: microsave.net

📊 Size: 115 KB

👤 Author: Venkata N.A. and Trevor Mugwang‟a

⬇️ Downloads: 121

Summary

Microfinance institutions (MFIs) have mastered group-based lending, but are now attempting to reach slightly better-off people using individual lending (IL). Key product features to consider for IL include loan size, loan term, repayment frequency, moratorium, prepayment, and purpose. Loan sizes for IL range from $400 to $1,000/$1,500, but can be as high as $7,000. Loan terms vary from 3 to 18 months, with some MFIs offering longer terms up to 2 or 3 years. Repayment frequencies can be monthly, weekly, or tailored to the client's cash flow and business cycle. A moratorium or grace period is often allowed, ranging from 7-45 days. Prepayment options can be offered, but MFIs may require clients to wait for the loan period to lapse before being considered for the next loan. The purpose of the loan should be restricted to business requirements, with loans for start-ups not recommended due to high default risk.

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Description

Microfinance institutions (MFIs) have mastered group-based lending, but are now attempting to reach slightly better-off people using individual lending (IL).

Technical Information

File Format: PDF
File Size: 115 KB
Pages: 2
Language: EN
Author: Venkata N.A. and Trevor Mugwang‟a
Total Downloads: 121
Last Updated: 2 weeks ago

Document Overview

This PDF document about Individual Lending Features provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into Individual Lending Features.