myKRO.org - Latest Comments

Re: Kiva Zip: Kiva’s New P2P Pilot

Jason — Tue, 10 Apr 2012 14:22:26 -0000

I work with Zidisha Inc., a small microfinance organization based out of Washington, DC that is run on a truly peer to peer microloan platform. Zidisha is the pioneer of P2P micro-financing. Started in 2009, by our Director Julia Kurnia, Zidisha was the first MFI to offer P2P lending. While Zidisha is a small organization, we are growing fast, and we believe that we have the best P2P platform available today.

We would love to talk to you more about Zidisha Inc.

Check out our website at www.zidisha.org, www.twitter.com/zidishainc, or www.facebook.com/zidishainc

Best wishes,

Jason Ladieu
Communications Manager
Jason@zidisha.org

Re: Micro credit vs. Micro credit-plus…..

Chris L — Mon, 19 Mar 2012 01:30:54 -0000

Intriguing post, Kayla. I have to admit to being guilty of the mindset that an economically viable model is the best way to help in a sustainable way. Perhaps the right level of "plus" services can actually reduce the risk of the loan enough to offset the cost of providing the service. It would be interesting to know which services have the greatest impact on the risk profile. In some sense it is a way of quantifying the "helpfulness" of the additional services.

Re: Microfinance Internship Opportunity in Beijing, China

Luhana Madeira — Thu, 26 Jan 2012 13:28:13 -0000

Hi, I'm a student at the ULB (Université Libre de Bruxelles), in Brussels, Belgium; in the field of Microfinance.

I'm very motivated and interested about doing an internship of 3 to 4 month in China, can be Xangai or Beijin.

Would you indicate any other opportunity for the year 2012?

Please, I look forward to hearing from you.

Kind regards,
Luhana

Re: Watch CGAP’s “Microfinance Now” Series

matthewsnyder — Thu, 22 Dec 2011 19:26:27 -0000

This is really great! Thanks for sharing these videos. I was looking for some good interviews and whatnot on microfinance. Again - thanks for the help!

Matthew Snyder
@trinityeffect

Re: Volunteer Videographer Wanted at SVMN

Fruit Tree Studios — Thu, 22 Dec 2011 10:48:54 -0000

If this opportunity ever comes up on the east coast, please keep us in mind! Thanks.

Re: Microfinance Job: Operations Officer – IFC (Global)

Seomaartin — Sat, 03 Dec 2011 07:30:59 -0000

A economical consultant so it is essential that you do your research to guarantee that the individual you will work with has a excellent reputation and knows what they are doing. Financial Advisory Services

Re: What Would a “Microfinance IPhone App” Include?

Tomkinton — Sun, 13 Nov 2011 10:44:11 -0000

Drew: not sure about the 'others' who might be searching but I'm in talks with some folks (not Kiva) about it. Email me privately anytime at tonmkinton@gmail.com
thanks

Re: Public Forum on Microfinance at the University of Washington -- How Small Loans Support Sustainable Development

brencermacisa — Sun, 16 Oct 2011 04:33:39 -0000

то не помнит. Не может осознать себя, не может восстановить в памяти маминого лица…

Re: Microfinance Job: Office Assistant – Vittana (Seattle, WA)

anicet mufenge — Tue, 20 Sep 2011 06:25:51 -0000

I would like to work in your institution if there some openings.
I have been branch manager in procreditBank Democratic Republic of congo in Africa. procredit bank is one of germany microfinance operating around the worlg. i speak correctly french.

Re: The Silicon Valley and Microfinance?

Kirsten Weiss — Tue, 13 Sep 2011 23:33:51 -0000

Thanks, Albert!

There are lots of great bloggers on this site and I'm the least prolific. I haven't had much to write about lately re: microfinance but hopefully will soon!

Kirsten

Re: The Silicon Valley and Microfinance?

Albert — Tue, 13 Sep 2011 23:04:29 -0000

Found you blog by way of yahoo I must say I m amazed with your blogposts!

Re: No Pago! Reasons to Resist Microfinance in Nicaragua

Steve Fix — Wed, 24 Aug 2011 18:14:47 -0000

I am a lender's agent in the USA representing banks, insurance cos and various private lenders.

Let me say that a microloan at 21% is a bargain! It's 100% unsecured and really they are so small, they are more like a nano-loan.

It's sad to see people manipulated by people like the shameful Ortega who only wants to line his own pockets - like politicians everywhere.

Re: Bad Seeds Can Spoil Microfinance

Drew Meyers — Sun, 31 Jul 2011 23:49:47 -0000

Unfortunately, bad seeds spoil it for the rest in almost every industry -- and certainly real estate (the industry where I've spent most of my time)) is one of those industries that has really been hurt by the bad apples.

Re: Microfinance Job: Events Coordinator – Microfinance Transparency (US & Kenya)

Leah — Wed, 27 Jul 2011 06:23:57 -0000

Hallo do you still need an event cordinator?

Re: Microfinance Job: Coordinator, Council of Microfinance Organization CEOs

RRO TRUST — Mon, 04 Jul 2011 10:59:24 -0000

RRO Microfinance Methodology

1 Delivery Model

Rural Reconstruction Organisation(RR0)is following a Joint Liability Group (JLG) lending methodology for its microfinance programme. The clients was organized in groups of five to form Joint Liability Groups (JLGs). These JLGs was further organized in centers (1-centre comprised of 2-JLGs) for effective administration of the groups. The JLGs meet regularly on weekly basis at a scheduled time and place for collection of installments. A Credit Officer (CO) from the Branch Office come to JLG meetings for conducting meeting and collection of loan installments.

2 Operational Structure

The operational structure defines the different units in the delivery models of RRO presently operate through 1-branch. The description of the different units in the operational structure of RROis given below:

2.1 Clients

A client is someone who agrees to join RROand abides by its rules and regulations. He/she will also become a member a JLG affiliated to RRO Clients are entitled to use the services of RRO as per its terms and conditions.

2.2 Joint Liability Group (JLG)

Up to five individuals will come together and form a Joint Liability Group whereby they give guarantee of each other for loan repayment. JLG members come together for the purpose of utilizing the financial services and it can dissolve after the first loan cycle. JLG will mainly be formed of small and marginal Dalite women and related job profiles.

Chart 1: Operational Structure

2.4 Branches

Branches will be the smallest administrative unit of RRO. A branch consists of the following staff:

Table 1: Branch Staffing
Designation No Responsibilities
Branch Manager 1 • All administrative responsibilities
• Loan approvals
• Target setting and their achievements
• Monitoring of Credit Officers
• Reporting to the Head Office/Area Office
Branch Accountant
(one of the Credit Officer) 1 • Preparation of books of accounts
• Preparation of MIS reports
• Budgets and variance analysis
• Reconciliation of collected amount
Credit Officers 6-8 • Formation of JLGGs and their training
• Sourcing of loan applications and preliminary appraisal
• Disbursement of loans
• Collection of installments

A branch will cater to around 3,000 clients. A branch will have an operational area of a maximum of 5-8 kilometers.

2.5 Area Offices/Regional Offices

Each Area/Regional Office in future will look after a maximum of eight branches. Only one Regional Manager and possibly an accountant will man each Area Office. The responsibility of the Area/Regional Office will be to monitor the branches and consolidate the reports produced by the Branch Offices to send these reports further to the Head Office. It is not necessary to have a separate structure for the Area Office. The Area Office could be based in one of the branches.

2.6 Head Office

The Head Office of RRO is based in Mukkudal.The Head Office coordinate the functions of all the branches. More specifically the Head Office perform the following functions:

1. Funds mobilization
2. Financial management
3. Coordinating with the Board of Directors
4. Product development
5. Systems development
6. Internal audit
7. Setting budgets and performing variance analysis
8. Human resource management including trainings
9. Performance management of the Branch as well as new branch opening
Considering the wide variety of functions performed by the Head Office, we are planning it to divide into different departments. Various departments and their functions have been shown in the following table. The structure of different departments will evolve as the scale of operations increases.

These departments will function in coordination with each other through formal and informal interactions. Initially, the functions of many of these departments will be combined but with increase in the scale of operations, all these departments will be separated with a separate head of department for each.

Table 4: Departments and Functions

Department Functions
Finance • Preparation and finalization of books of accounts
• Preparation of funding proposals
• Negotiation with lenders and investors
• Business Planning
• Budgets and variance analysis
• Treasury management
• Statutory compliance and reporting
MIS • Collection of reports from the branches
• Consolidation
• Storage and dissemination of information
• Preparation of IT strategy
• Purchase and maintenance of hardware
• Software development and maintenance
Operations • Formulation of operational strategy
• Branch opening
• Target setting for branches and other staff
• Monitoring of branches and staff as well as operational reporting
Human Resources & Administration • Preparation of HR strategy
• Recruitments and training
• Payroll accounting
• Performance appraisal
Administration • Purchases
• Maintenance of fleet
• Liaison
• Estate management
Internal Audit • Audit financial transactions
• Audit of non-financial transactions
• Review of internal controls

Procedures of group formation, disbursement and collection of loans
Group formation

RRO follows the JLG methodology. Groups made up of 5 individuals. Once an area has been chosen a credit officer and Branch Manager go to the field and conduct a general meeting. In the general meeting they explain RRO, its products and methods to the people. The Branch Manager ask the people to form into groups for the next scheduled meeting. For the second meeting in the field the credit officer go alone. The credit officer explain the training and finalize groups. Training is then conducted and group members are asked if they accept the group joint liability. If liability is not accepted the group was disbanded and the process begin again.

Group Recognition Test
Once the training is completed, a test is administered. All group members must be present for the test to be administered. If a member is missing then the test is cancelled and rescheduled. The test ensures members have an adequate grasp of the loan program. A 100% pass percentage is required for a group to join the microfinance, if there isn’t a 100% pass rate, the group receives further training and retake the test. Since the credit officer is the person responsible for the training, he/she is not allowed to administer the verbal test. The Branch Manager questions the group on loan specifics as well as the concept of joint liability. The Branch Manager ensure that each member of the group has participated in the questioning. He/she must also question the group members on the purpose of their loan and if these responses match the group verification form.
Loan Application Process
The Credit Officer collects photographs and proof of addresses from each member to begin the loan application process. If a member is missing any of the documents the process is cancelled. This enforces the joint liability concept and method. A family member is then asked to sign the application form. (Other arrangements can be made in extenuating circumstances for example as in the case of a widow living alone.) The loan form and group resolution are then filled out. All documents are then sent for processing.
Loan Disbursement Process
Finally the loans are ready for disbursement. The Branch Manager personally disbursed the laon at Branch Office to all members of JLG. Once again as before if all members are not present the meeting will be cancelled. A promissory note is signed by all members for the loan amounts attesting to their liability. Then loan cards(pass book) cards are disbursed along with funds. Each Client receives one passbook mentioning all the details of laon disbursed and their loan repayment schedule. The loan card/pass book will be notated and signed upon each payment. The loan card/passbook is for the clients records.

Loan Collection Process
Lastly is the collection process. During regular group meetings, members will decide on loan disbursements and provide payments to the credit officer. The meetings allows for members to discuss any issues or problems they may be facing. It also allows the credit officer to discuss any bad debt and the general progress of the group’s portfolio. The credit officer will take attendance and collect cash. Any cash that is short or late must be collected from the other members.

Re: Looking Forward to Volunteering for Lumana Credit in Ghana

wale — Wed, 29 Jun 2011 04:46:11 -0000

Drew Meyers,
If you still need to volunteer in Africa.
Nigeria is a good option. It is close to Ghana and has higher number of micro finance instituitions.

Re: Microfinance Jobs: Financial Education Intern – Microfinance Transparancy (United States)

Esther — Mon, 30 May 2011 21:13:24 -0000

Dear Sir,

May I know how to join this part-time Financial Education Intern?

Thank you.

Regards,
Esther

Re: Measuring the Progress of Microcredit

Rahul B — Wed, 13 Apr 2011 00:38:37 -0000

Where do you get the information from fro the graphs.

Thanks You

Re: Learnings from a Month in Ghana with Lumana Credit

Ryan — Thu, 06 Jan 2011 15:37:48 -0000

Drew,
Great recap of the trip, and it's especially encouraging to hear how you come away from the experience with a renewed passion for microfinance. Your experience seems to confirm that microcredit only works when it's used as a means to the larger end of poverty reduction.
Ryan

Re: What’s Happening with Microfinance in Andhra Pradesh?

Leslie Forman — Wed, 22 Dec 2010 23:52:44 -0000

Thanks Peter for your comment! Thanks for giving some background on the history of financial services in India.

I agree with you that savings programs might be more effective than microloans in alleviating poverty over time, especially for people who have no opportunity to store money in a way they can trust.

I also think that microloans might seem more attractive in the short-term, for donors, investors, and the clients themselves, since receiving a loan could be an immediate benefit, while opening a savings account is a more long-term process that requires building trust and educating clients over a longer period of time.

I find the last line of your comment, "Do they intentionally chose to have poor people eternally indebted to them as a sort of purgatory, redemption?" quite thought-provoking. I don't think "they," the microfinanciers of the world, have "purgatory" and "redemption" as their main goals. I think that "helping people" and/or "making money" seem more plausible.

That said, this is not the first time I've seen religious language invoked in a microfinance debate.

In a smart comment on my post here about the "No Pago!" crisis in Nicaragua, Alex Nading wrote this:

behind the opposition to microfinance is also a religious opposition to “usury.” “Zero Usury” is the program Ortega started to , (overtly) crack down on informal loans, and to (covertly) encourage people to choose Caruna over other microlenders. The program is very popular, and it has been delivered with a definite religious twist. It would make fascinating social science research.

Thus, the arguments both for and against microfinance (and for and against certain forms of microfinance) can be expressed in religious terms.

I'm curious to hear what other people think about this too.

Happy Holidays to you too!
Leslie

Re: Microfinance Giftcards For The Holidays

Drew Meyers — Tue, 21 Dec 2010 23:49:58 -0000

Wokai also has a gift card program - http://www.wokai.org/giftCard

Re: What’s Happening with Microfinance in Andhra Pradesh?

Peter van Dijk — Tue, 21 Dec 2010 22:31:21 -0000

Since the late 19th century, building an inclusive formal financial sector is a priority for the Indian Government (Postbank, Finance Ministry's savings mobilisation program).
Over the last decades only a quarter of Indian adult citizens have access to formal financial services. Only such formal services offer quality and legal assurances.

The foreign social community that passionately supports Micro-lending undertaken principally by (local and foreign) NGOs and Self-Help Groups express, with their support decision, to explicitly avoid that poor citizens have more rights and, first and foremost, a better understanding on how they can better manage the little money they have (for survival, asset strengthening and advancement). Only a basic transaction account with a regulated financial institution can function as a financial services tool for better money management Such a basic transaction account is being promoted in the USA, but US supporters in India (and elsewhere) seem that it is a better idea to inject the debt-addiction into the poor.

The bankruptcy of Chicago-based SouthShore Bank could have been another signal for the misjudgment of many people who express their commitment to contribute to poverty alleviation. Do they intentionally chose to have poor people eternally indebted to them as a sort of purgatory, redemption?

Best wishes for the season, Peter

Re: Interview on Microfinance Commercialization with Mariama Ashcroft

WikiFunna — Thu, 16 Dec 2010 07:43:35 -0000

Is it possible to contact administration?
Thank for all

Re: The Silicon Valley and Microfinance?

Shower Caddy — Fri, 03 Dec 2010 02:47:21 -0000

i haven't been on the silicon valley but i would really love to visit that place. i bet that it is a very exciting place to visit ~.-

Re: The Silicon Valley and Microfinance?

Storage Chest · — Thu, 04 Nov 2010 05:39:37 -0000

silicon valley is great because it houses some of the world's best electronics firm ::