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Role of Microcredit in Poverty Alleviation: Profile of the Microcredit Sector in Lebanon
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December 5, 2010
P.15
4. Profitability
A) selection of the right staff: the choice of loan officers for work in the field is especially important, as they need to have strong leadership and interpersonal skills, a goal orientation, marketing creativity, wisdom, enthusiasm and technical know-how in the area of microcredit.
B) efficient approval procedures. A maximum of one week for loan approval and disbursement is considered a reasonable time frame. Extended writing periods could mean the loss of a moral (and perhaps financial) incentive for the loan officer and a subsequent loss of faith in the programme on the part of both the officer and the potential borrower.
C) efficient use of time. Loan officers need to spend most of their time in the field contacting potential borrowers and following up on projects. The presence of admin assistants to perform office paperwork, support the programme supercisor and follow up with borrowers in the absence of the loan officer has proved ro be of great help in increasing the number of borrowers.
D) provision of transportartion expenses. If loan officers are not reimbursed for their transportation expenses, they could lose interest in visiting borrowers as often as in necessary, thus increasing risk of default and decreasing the potential number of borrowers
E) ensuring effective communication. Direct communication between borrower and loan officer is necessary at all stages (application through repayment) and personal visits must be made every week.
P. 20
Quran: "those who live off the interest on loans will never stand up, except in the way those whome Satan knocks down with a fit rise up again." ... Observant Muslims refuse to pay interest on small loans, regardless of the name it is given or the rate to be charged
4. Profitability
A) selection of the right staff: the choice of loan officers for work in the field is especially important, as they need to have strong leadership and interpersonal skills, a goal orientation, marketing creativity, wisdom, enthusiasm and technical know-how in the area of microcredit.
B) efficient approval procedures. A maximum of one week for loan approval and disbursement is considered a reasonable time frame. Extended writing periods could mean the loss of a moral (and perhaps financial) incentive for the loan officer and a subsequent loss of faith in the programme on the part of both the officer and the potential borrower.
C) efficient use of time. Loan officers need to spend most of their time in the field contacting potential borrowers and following up on projects. The presence of admin assistants to perform office paperwork, support the programme supercisor and follow up with borrowers in the absence of the loan officer has proved ro be of great help in increasing the number of borrowers.
D) provision of transportartion expenses. If loan officers are not reimbursed for their transportation expenses, they could lose interest in visiting borrowers as often as in necessary, thus increasing risk of default and decreasing the potential number of borrowers
E) ensuring effective communication. Direct communication between borrower and loan officer is necessary at all stages (application through repayment) and personal visits must be made every week.
P. 20
Quran: "those who live off the interest on loans will never stand up, except in the way those whome Satan knocks down with a fit rise up again." ... Observant Muslims refuse to pay interest on small loans, regardless of the name it is given or the rate to be charged
Displaying 1 - 1 of 1 review