Micro and Small Enterprises Lending for MFIs -Strategic Issues to Consider First

• by Krishna Thacker and Trevor Mugwang
• Jul 6, 2010
• 1 min
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This note highlights the importance of strategic issues that need to be on the top priority an MFI venturing into the business of individual lending.

For a successful product offering detailed market research and professionally managed product development process are the important pre requisites. Individual lending (IL) to the poor is no exception and for a successful IL product the institutions first need to know their client needs.
Strategic issues that need to be on the top priority of the higher management of an MFI venturing into the business of individual lending include:
– Institutional mission
– Industry and competitive environment
– IL client segmentation
– Institution’s capacity to deliver the product
This note attempts to highlight the importance of these strategic issues in detail.