Designing a Housing Microfinance Loan Product TRAINING WORKSHOP FOR BANKS INTERESTED IN OFFERING HOUSING MICROFINANCE OR SIMPLY CURIOUS ABOUT IT

MARKET RESEARCH TOOLS 1. FOCUS GROUP DISCUSSION (FGD) 2. KEY INFORMANT INTERVIEW 3. SURVEY QUESTIONNAIRE

Guide in Conducting FGD Prepare for your FGD Select your FGD participants Manage your group Conduct your FGD Record responses Analyze the data

FGD with Bank AOs/Staff Are clients requesting loans for housing purposes? What home related project are usually undertaken? Own-financing or borrowing? Using part of ME loan for home improvement purposes? What do they think their clients can easily afford to pay monthly? Give a range… Are there existing HMF providers in their area?

Key Informant Interview Building Materials Suppliers (BMS) Using Interview Guide Questions (Handout #1) Mostly open-ended Ask all questions in the guide PROBE, PROBE, PROBE

How many do we need to interview? How do we do interviewing? Survey Questionnaire What is it? Why do we need it? How many do we need to interview? How do we do interviewing? How do we process the responses? How do we analyze and use the results? When there is time, Facilitator can engage participants by asking the questions and getting their responses. But first ask, HOW MANY OF YOU HAVE EXPERIENCED BEING INTERVIEWED IN A SURVEY OR HAVE BEEN AN INTERVIEWER IN A SURVEY? If anyone among the trainees have participated in a survey either as a respondent or interviewer, ask them to help explain the answers to the questions on the slide. WHAT IS IT? – AA SURVEY IS A QUANTITATIVE TOO. WHY DO WE NEED IT:? – A WELL CRAFTED QUESTIONNAIRE CAN PROVIDE US ANSWERS TO INFORMATION THAT CAN HELP US IN DESIGNING A LOAN PRODUCT, DETERMINING DEMAND, AND WHAT OUR TARGET MARKET’S PREFERENCES? SO THEN YOUR BANK CAN OFFER A PRODUCT THAT THE MARKET WANTS. HOW MANY INTERVIEWS? – AT LEAST A HUNDRED FOR THE FIRST SURVEY FOR PURPOSES OF DESIGNING A PRODUCT. WHEN EXPANDING TO OTHER BRANCHES, AT LEAST 35 COMPLETED INTERVIEWS WOULD BE THE MINIMUM.

Sections of the Questionnaire Respondent’s Profile Business Profile Home Ownership Housing Situation Home Improvements Potential Demand for HMF Loan with RB & Savings Satisfaction Rating INTRODUCE AND HAND OUT THE QUESTIONNAIRE.

THE QUESTIONNAIRE Walk through the questionnaire Practice reading Mock interviewing Hands-on-Practice with Clients Go through the questionnaire quickly to familiarize participants on the look and arrangement of topics and questions. Ask each participant to read 5 questions each. Call on volunteers one to interview and another to act as the respondent. #4 requires actual interview practice in the field. This can be done if there is time to take participants to a bank and interview bank clients.

Field Interviewing Each team member should have a chance to interview 3 respondents 2 participants will be appointed to conduct the interview with BMS

Schedule for Field Practice Thursday, February 9, 2012 - Example Meeting place: GM Bank Head Office Departure time: 7:00 AM Lunch: 12:00 NN Data processing schedule: 1:00 PM INSTRUCTIONS…

FGD with Bank AOs/Staff Are clients requesting loans for housing purposes? What home related projects are usually undertaken? Is it owner-financed or through borrowings? Using part of ME loan for home improvement purposes? Can their clients easily afford to pay on a monthly basis? Give a range… Are there existing HMF providers in the area?

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