THE COLLATERAL LENDING TRAP AND BUSINESS DEVELOPMENT SERVICES (BDS)

Cambodia’s economy is on the upward trend for several years, and has continued to grow and attract investors. In the words of Eric Sedgwick, Asian Development Bank Country Director, “Private consumption, exports and investment, including strong and diversified foreign direct investment will all drive economic development in 2013 and 2014.” Among the top contributors to…

The need for dialogue to understand the ASEAN Economic Community

Photo source: http://theasiacareertimes.com/wp-content/uploads/2011/07/asean.jpg The formation of the ASEAN Economic Community (AEC) is one of the most significant issues nowadays but also the least discussed. When fully implemented in 2015, it is expected to transform the economic environment in the region. The design for the region as a single market and production base is presented in…

CATEGORIZING MICROFINANCE LOAN PRODUCTS

Market research is now an indispensable tool for MFIs in enhancing their products and services. The emerging trend is now far from the previous one-size-fits-all financial products that has been the cornerstone of microfinance success for several decades. Group loans are basically reserved for first time borrowers that have yet to establish track record of…

Developing Agri-Microfinance (AMF) Loan Product

Developing agricultural microfinance (AMF) addresses two main issues in development finance: first, to ensure that small farmers have access to credit for production expenses; and second, to address the risks involved in agricultural production. Risks is agricultural production is so high that most formal financial institution do not venture in the agricultural sector, leaving government…

Transforming Development Organizations into Microfinance Operators

Microfinance has been touted as one of the most effective tools in providing financial access to the poor, and helping them move out of poverty. In most developing countries, non-government organizations providing microfinance services are considered informal service providers. They are not regulated and government agencies in most cases acquiesced and allow them to operate…

6 Features of Effective Financial Literacy Materials

Financial literacy is considered as one of the main tools to prevent over-indebtedness that has plagued many microfinance borrowers. A consistent and effective financial literacy program will ensure that borrowers receiving loan funds will use them for its intended purpose and will not divert it for non-productive purposes. One main concern however is the perception…