Micro-Lending Client Management Process

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Problems we are trying to solve in Afghanistan

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Program for Women

Definitions of Key Terms

Our micro-lending process (similar to The Grameen Bank in Bangladesh) involves a series of actions that insures:

1. The distributions are used for their intended purposes,

2. Clients / borrowers (primarily the poor, indigent, in need and women) are truly motivated about participating in our program; the well-off do not find our process worthwhile due to its rigor and discipline,

3. Participants are educated about our process; the process is easy to follow,

4. There are penalties (borrower, group and center) and internal controls (peer pressure) for monitoring and maintaining accountability, and reducing erratic behaviors such as missing payments,

5. Incentives are created to promote / encourage collaboration, teamwork and support for one another,

6. A sense of competition and drive for achievement is established,

7. Clients / borrowers learn the value of saving, and

8. The amount of work on the micro-lending bank is reduced while increasing the self-reliance of the borrowers by transferring supervision to the borrowing groups.

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