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Enhancing Group Lending: Stages and Membership Lifecycle Workshop

Join our workshop on Group Lending Enhancement, focusing on the lifecycle of group membership through its critical stages: Formation, Maintenance, and Transition. Understand the characteristics defining each stage, from rapid growth in the Formation Stage to managing member fatigue and delinquencies in Maintenance, and successfully transitioning clients in the Graduation Stage. Learn effective strategies to enhance repayment performance and member engagement. Equip yourself with the knowledge to address client needs and improve overall lending practices in your group.

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Enhancing Group Lending: Stages and Membership Lifecycle Workshop

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  1. GROUP LENDING ENHANCEMENT WORKSHOP Group Stages and Membership in Group Lending

  2. Group Lending: Stages in Center/Group and Membership Life Cycle • Formation Stage • Maintenance Stage • Transition or Graduation Stage

  3. Center Lifecycle MEMBERSHIP TIME

  4. Formation Stage: CharacteristicsZero to 2 years • Increase in Group/center membership • Rapid expansion in membership recruitment • Members still adhere to credit & group guarantee “tapal” obligations • Some delinquencies may be experienced • Novelty of group lending experience to a new AO may inspire AO to do good and well

  5. Maintenance StageLess than 2 to 4 years • Members experience “tapal” fatigue • Attendance in meetings decline • Group/center experience member drop outs • Delinquencies may worsen • Bank staff may resort to collection techniques that treat clients poorly • Good payers and those with growing businesses may leave • AO fatigue or burnout

  6. What processes happen in a center during Maintenance Stage?

  7. Transition or Graduation Stage2 years & above • Borrower has had at least 4 loan cycles • Center may have 2 categories of clients: • Clients wanting to and qualified for individual liability credit. Individual credit responsibility is key to keeping these clients. • Clients that should stay under group loan liability: not qualified for the maximum loan amount available under group loan; or have poor repayment record

  8. Framework: Stages of Group & Membership in Group Lending \ \

  9. Framework: Stages of Group & Membership in Group Lending

  10. Framework: Stages of Group & Membership in Group Lending It is important to recognize the symptoms

  11. Framework: Stages of Group & Membership in Group Lending It is important to transition clients in time before they leave you

  12. Criteria to Consider in doing the product enhancement or transitioning • Aging Centers/membership • Repayment Performance • Readiness of the Clients • Clients’ demands

  13. Thank You!

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