On Microfinance Blues
Within minutes after posting Microfinance Blues, our friend and microfinance expert, Levi Verora, posted a response. Let me share this with you. Levi, much thanks.
I would like to share with our FB friends, particularly those involved in microfinance, the following advice from Levi P. Verora, a microfinance expert, in response to my previous blog, Microfinance Blues:
hi nes. levi here. some points on microfinance of bohol foundation. microfinancing is supposed to bring hope to poor borrowers to rise above their situation. that has been the intention when Grameen Bank, Comilla Proshika, Proshika Comilla, and other MFIs were formed in Bangladesh. but a mindsetting (paradigm shift, they would say) had to take place among the all-women borrowers themselves till they formed part of a movement, a crusade to fight poverty.
now back to Bohol. microfinancing must be articulated fully well with the foundation's borrowers. they must have a mindset like that of the all-women, poor Bangladeshi borrowers. if that is not taken or made to ripe, the borrowers will not feel obliged to repay their loans and honor other obligations. second, there must be a way to spot and screen loan applicants. begin with an assessment of their character, then capacity to pay, then collateral (if any), then capitalization (equity or savings of their own), and finally capability to manage the loan amounts and grow out their businesses. third, there is no sense if they remain borrowers operating various livelihood endeavors.
there must be stinging ways to graduate them into micro and even small entrepreneurs, with growing businesses and networth. here, business advising and coaching will matter a lot, alongside compliant monitoring and evaluation. there are more points I wish to share, but the space is limited. when I get to visit you one day, we'll talk about them. cheers.
Within minutes after posting Microfinance Blues, our friend and microfinance expert, Levi Verora, posted a response. Let me share this with you. Levi, much thanks.
I would like to share with our FB friends, particularly those involved in microfinance, the following advice from Levi P. Verora, a microfinance expert, in response to my previous blog, Microfinance Blues:
hi nes. levi here. some points on microfinance of bohol foundation. microfinancing is supposed to bring hope to poor borrowers to rise above their situation. that has been the intention when Grameen Bank, Comilla Proshika, Proshika Comilla, and other MFIs were formed in Bangladesh. but a mindsetting (paradigm shift, they would say) had to take place among the all-women borrowers themselves till they formed part of a movement, a crusade to fight poverty.
now back to Bohol. microfinancing must be articulated fully well with the foundation's borrowers. they must have a mindset like that of the all-women, poor Bangladeshi borrowers. if that is not taken or made to ripe, the borrowers will not feel obliged to repay their loans and honor other obligations. second, there must be a way to spot and screen loan applicants. begin with an assessment of their character, then capacity to pay, then collateral (if any), then capitalization (equity or savings of their own), and finally capability to manage the loan amounts and grow out their businesses. third, there is no sense if they remain borrowers operating various livelihood endeavors.
there must be stinging ways to graduate them into micro and even small entrepreneurs, with growing businesses and networth. here, business advising and coaching will matter a lot, alongside compliant monitoring and evaluation. there are more points I wish to share, but the space is limited. when I get to visit you one day, we'll talk about them. cheers.
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