Group Lending Enhancement and Transitioning

Course Description

The MABS Program developed the training course on Group Lending Enhancement and Transitioning to proactively respond to foreseen problems as group lending programs of the banks reach their maturity. As the groups and their membership get older, lending institutions may experience some challenges especially if there are no continuous innovations and improvement in the product and as competition becomes keener. Product decay maybe experienced which can lead to:

  1. PAR issues
  2. Client dropouts
  3. Harder marketing for new clients.

As product decay happens, the group-lending product becomes unattractive to clients. In addition, clients who initially started out as the same level as other members in the group may have expand more rapidly than other members and often need a broader range of individualized microfinance products and services. Management should be sensitive to address this through product enhancement and/or transitioning.

Objectives :

At the end of the 3-day training, participants are expected to:

  1. Understand the best practices for group lending.
  2. Learn about the stages of group and membership for group lending.
  3. Know how to classify aging groups and members.
  4. Gather information through survey questionnaire, from clients’ perspective, the status of the group lending program of the bank
  5. Understand when to transition group to individual liability.
  6. Learn the step-by-step process and procedure in transitioning.
  7. Learn how to apply the tools for transitioning.
Module Content:

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