1. CLIENTS, MARKET, AND NEW PRODUCT DEVELOPMENT
MODULE 1: LESSON THREE
CLIENTS, MARKET, AND NEW PRODUCT DEVELOPMENT

2. MICRO-LENDING METHODOLOGIES
Individual lending
Agent banking
Group based lending
Small group
Grameen Model
Solidarity Group Model
Community based
Credit Union
Village Savings and Loan Scheme
Village Banking Model

3. INSTITUTIONAL OPERATIONAL REVIEW
Corporate governance
Market and clients
Credit methodology
Distribution
Human resource management
Management information system
Account and financial management
Operational risk management

4. CLIENTS OF MICROFINANCE INSTITUTIONS
Women
Microentrepreneurs
Small farmers
Landless and smallholders
Resettled persons
Indigenous persons
Low income persons in remote or subsistence areas
Direct Targeting Tools
Cashphore housing Index
Participatory Wealth Ranking
Household Survey
Indirectly targeting
Loan products
Lending methodology

5. MARKET FOR MICROFINANCE
Areas where clients of microfinance exist.
Urban slums and squatters
Urban renters
Migrating poor in emerging market towns
Agricultural dependent subsistence farmers
People living is scattered settlement, inaccessible hills and mountains

6. NEW PRODUCT DEVELOPMENT
Market identification
Client identification
Undertaking area potentiality survey
Un-met demand
Exportable items
Importable items
Import substituting possibilities
Identifying potential products and value chain development
Product life cycle analysis
Product development

7. FEATURES OF NEW PRODUCTS
Savings products
Minimum savings balance
Savings interval
Interest on savings
Withdrawal facility
Withdrawal frequency
Conditions for account closing
Loan Products
Loan size
Interest rate
Loan term
Repayment
Interest payment
Delay payment and
Penalty and rebate system

8. CLASS ASSIGNMENT
You are recruited by a local MFI to develop microfinance products and services in a loan product in Pyutar VDC of Lalitpur district. Basic information about the VDC is given below. Using these information, suggest the suitable microfinance products for the MFI.
S.N.
Particulars
Value 1
Total Population
4,500 2
Households
1,000 3
Household below poverty line (%)
70% 4
Agricultural dependent households
80% 5
Households with overseas migrant workers
50% 6
Average annual disposable income of the HHs
395,000 7
Marginal propensity to save
12% 8
Livestock holding (%)
95% 9
Formal sector workers (% population) 5% 10
Road access (all weather: 5 km), fair weather: 15 km
Exist 11
Potential commodities: vegetables, coffee, citrus, dairy, goat, beans, poultry and piggery