History of banking Among many other things, the Code of Hammurabi from BC recorded interest-bearing loans.
What are those techniques or tips of marketing system, legal system and etc…Kindly pls. It is a strategy used to combat poverty particularly in the rural areas. There are several approaches to engaging in microfinancing.
Partnering with these organizations will provide you logistics, knowledge and support in pursuing this endeavor. SBA-Accredited Microloan Program However, you can also decide to go at it alone — but with a lot more work, more risks and more resources.
One of your primary concerns will be to establish a system or mechanism that would allow your micro-loan clients to repay their loans on time. With cash flow-based lending, you should get a clear picture of revenue streams of your potential clients.
You can determine their actual and potential income, and, with this information in hand, determine how much of a loan the potential clients can afford to handle. Given this, it is imperative that you select your clients very carefully. Your client must have the ability to pay you back with cash, not with chickens or vegetables harvested from their gardens.
It is not a social service. With this approach, it can be very profitable for you. Interest rates on micro-loans must be market-driven, and must be high enough to allow you to cover all costs associated with the loan. Here in the US, many micro-lenders even charges the same kind of interest rates charged by credit cards.
Providing microfinancing, however, is a big undertaking. You must have enough support and logistics to allow you to seek out clients which would be very easy to find in the Philippineshowever to ensure repayment and pursue laggard clients is another story.
Seek out specialized training in operating a successful microfinance operation the Asian Institute of Management in Makati offers such courses. Remember, you must learn not only to run a financing operation, but how to provide excellent client service and nurture long-term relationships with your microfinance clients.
An Alternative Source of Capital for Your Business Your capability to collect repayments will depend on your ability to establish a presence among your clientele. If you have a wide clientele located in Metro Manila, Laguna, Iloilo or Baguio, it may be difficult to collect back on your loans.
An important part of your logistics is software that will allow you to keep track and monitor repayments. Your software must instantly flag any instance of late repayment, or non-repayment.
Given that microfinance loans are typically of short duration usually some where between 30 days and six monthsand frequently call for weekly or bi-weekly repayments.
Keeping track of payment due dates for hundreds of clients is a demanding task, and can only be achieved if you have a good IT infrastructure. If you cannot have this kind of software, a very tight record keeping is necessary to allow you to monitor payments and repayment schedules.
Another more secure example of Microlending is the pawnshop. This business require accreditation from the Central Bank as a financial institution, you may check the rules and regulations from there.
You may want to visit the following sites to get more information on microfinancing:Globe Telecom, commonly shortened as Globe, is a major provider of telecommunications services in the urbanagricultureinitiative.com operates one of the largest mobile, fixed line, and broadband networks in the country.
Globe Telecom's mobile subscriber base reached million as of end-December , down 3% from the million subscribers reported a year ago.
Make a loan to an entrepreneur across the globe for as little as $ Kiva is the world's first online lending platform connecting online lenders to entrepreneurs across the globe.
Institutional Document. Papua New Guinea: Country Operations Business Plan () The country operations and business plan (COBP), – of ADB for Papua New Guinea is consistent with ADB’s country partnership strategy, (CPS) – and the Government of Papua New Guinea’s national development plans.
The existent business plan provides a rational framework for the microfinance part of EEA. The Company was founded by Dr. Jasson Kalugendo and Jerry Twombly who, along with Dirk Sander, are actively managing the company.5/5(3). Know about the Cooperative Development Authority and its work.
Learn about the status of the cooperative sector in the Philippines, Cooperative Laws that govern their operation and other stakeholders that advocate cooperativism. The impact assessment uses cross-sectional data from a household survey of over client households from all regions in Sri Lanka to evaluate the impact of the initial ProMiS program phase (September – November ) on microfinance clients.