Are You Poor Enough?: Client Selection by Microfinance Institutions

• by Graham Wright
• Mar 1, 2011
• 1 min
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his note addresses the issue of client selection by MFIs.

This note addresses the issue of client selection by MFIs. It highlights that while the need for sustainability and a more commercial microfinance have been accepted and absorbed by most of the microfinance industry leaders, it is important to take the risk of mission drift into consideration. It then describes the different categories of poor people targeted by MFIs and highlights the needs for careful selection, and more so, of appropriate product design based on thorough market research.