MODULE 1: MARKET RESEARCH
Lecture: September 6-7, 2010 (Monday-Tuesday)
Field work: September 8-9, 2010 (Wednesday-Thursday)
Knowledge of the market is necessary for the successful design of a microfinance product. Through market research, rural banks will be able to identify potential risks and the opportunities — nature of the demand for microfinance services, the size of the market, and the demographics of the target clients. After the three-day lecture, the participants will return to their respective provinces and will conduct a market research at their target area of operation.
OUTLINE
1. What is Market Research
2. Determining the Size of Your Target Microfinance Market
3. Secondary Data Gathering and Area Mapping
4. Market Survey
5. Data Processing and Analysis
6. Focus Group Discussion Session
MODULE 2: PRODUCT DEVELOPMENT
Lecture: October 4-7, 2010 (Monday-Thursday)
After conducting market research, participants should now be ready to design their respective loan products. In the Product Development Module, participants will be provided with the necessary knowledge and skills to design a product prototype, develop a product manual, determine if any necessary adjustments in their MIS are needed, and prepare financial projections.
OUTLINE
1. Module Overview
2. Product Development Process
3. Determining Loan Product Features
4. Effective Interest Rate
5. Product Validation Tool: Focus Group Discussion
6. Lending Procedures And Internal Control
7. Microfinance Unit Organization and Management
8. Zero Tolerance: The Nature and Costs of Loan Delinquency
9. MIS Gap Analysis MIS Gap Analysis Presentation
10. MIS Reports MIS Reports Presentation
11. Financial Projections
MODULE 3: LOAN ADMINISTRATION AND MANAGEMENT
Lecture: November 8-10, 2010 (Monday-Wednesday)
Field work: November 11, 2010 (Thursday)
Loan administration and management is critical in the MABS Approach to microfinance. Two of the critical components are the assessment of credit worthiness and capacity to pay of borrowers. The information provided by these is vital and considered to be valuable in microfinance operation.
OUTLINE
1. Credit Investigation/ Background Investigation
2. Preparing the Credit Investigation/ Background Investigation Report
3. Practical Tips in Doing Credit Investigation/ Background Investigation
4. Cash Flow Based Lending
5. Preparing the Client’s Cash flow
6. Reviewing a Client’s Cash flow
7. Performance Monitoring
8. Measuring Client Drop-out, Client Retention and Client Desertion
9. Staff Evaluation Microfinance Staff Performance Evaluation
