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With your
start-up staff in place, it's time to bring your services to target
communities and begin the process of marketing and group formation.
In this section, you will become familiar with basic steps in
marketing your services and forming Credit Groups.
1.
Before You Start
Before Field Agents make is their
first visit to the field, spend time with them to:
- thoroughly review the loan design
and group structure;
- make any modifications to loan
rules or client criteria you think are appropriate;
- review the suggested informational
materials presented in this section and modify them to match
your policies and requirements;
- prepare flyers, posters, or brochures.
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2.
Marketing Steps
The following outline describes the basic steps in finding clients,
organizing them into Credit Groups, and managing loan activity:
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MARKETING
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WHAT AND
HOW?
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WHO AND WHERE?
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| Marketing
Visit |
Field
Agent visits with community leaders to enlist support and
distribute flyers. |
Field
Agent
in the community
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| Information
Meeting |
Field
Agent holds an information meeting in a public place. |
Field
Agent
in the community
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| Group
Formation |
| Group
Development Meetings |
Field
Agent helps to form groups of 5 to 15 clients. Groups create
bylaws and elect officers. |
Field
Agent
in the community
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| Application
Meeting |
Members
complete individual Loan Applications. The Field Agent helps
members review and approve loans. Members sign applications.
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Field
Agent
in the community
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| Initial
Site Visits |
Using
the Loan Application as a reference, the Field Agent visits
each applicant to verify information. The Field Agent signs
loan applications. |
Field
Agent
in the community
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| Group
Certification |
The
Loan Manager visits the group and signs a Credit Group Certification
form if the group is ready to borrow. |
Loan
Manager
in the community
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| Loan
Steps |
| Staff
Reviews |
Field
Agents and the Loan Manager meet periodically to present group
applications to ensure that paperwork is in order. |
Loan
Manager and Field Agents
At the Office
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| Loan
Processing |
The
Loan Manager gives paperwork to the accounting staff for processing.
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Loan
Manager and Bookkeeper
At the Office
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| Loan
Disbursal |
The
Field Agent issues the first group loan to the Group. |
Field
Agent
in the community
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3.
The Marketing Visit
The Field Agent visits each target
community to research local needs and to enlist the support of
community leaders. Building credibility and trust may vary from
culture to culture and community to community. Generally, the
endorsement of a few leading individuals can greatly influence
community acceptance.
Community leaders can be traditional
authorities and/or elected officials. They can also be prosperous
heads of households, school teachers, religious figures or anyone
well regarded and trusted. The Field Agent should establish a
dialogue with important community figures so they may:
a.Inform the Field Agent of important
issues about the community such as:
- money-lender activity
- crop problems
- crime
- daily work patterns of women
- attitudes toward lending
- the role of religious institutions;
b. Advise the Field Agent on the
best time and place to hold meetings;
c. Give approval to post announcements
and distribute materials;
d. Agree to help promote the programme
by word of mouth;
e. Agree to introduce the Field Agent
at the first Information Meeting.
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4.
The Information Meeting
The Information Meeting provides
a general introduction to the project, its basic benefits, and
the rules for joining and borrowing. During the information Meeting,
the Field Agent explains the programme- preferably using visual
aids if possible. Graphics are used in- stead of written charts
if appropriate.
At the close of the meeting, the
Field Agent schedules a Group Development Meeting for those who
believe they want to join.
| Welcome
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Community
Leaders introduce the Field Agent. Field Agent welcomes attendees
and asks them to state their names and economic activities.
If the Field Agent has time, s/he may ask attendees how they
would use a $50 loan. This question promotes lively discussion.
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| Presentation
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The
Field Agent gives the presentation. S/he should be very familiar
with the information prior to the presentation. Several rehearsals
with the Loan Manager of Project Director will help. |
| Invitation
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The
Field Agent asks prospective members to find other gorup members
and to come to the next meeting to begin forming a Credit
Group. |
| Scheduling
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The
Field Agent sets the next meeting for a few days later and
thanks the community leader and all those attending. |
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5.
Sample Presentation
Read and modify the sample visual
aids below to accurately reflect your programme. Visual aids allow
Field Agents to give a uniform presentation. They ensure all pertinent
information is presented and is presented consistently to different
communities.
Visual aids consist of very large
sheets of paper with large type information indicating basic guidelines
for your programme (MicroStart). Each box on the following pages
is intended to be a separate sheet of paper.
Eight sample visual aids are provided
below:
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1.
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Do
you need a loan for your economic activity?
MicroStart
can help!
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2.
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What
is MicroStart?
- MicroStart
is a programme that issues loans to individuals
who are selfemployed.
- In
order to qualify, the first rule is that potential
borrowers must form voluntary groups to guarantee
each other's loans.
- Through
MicroStart, a member may borrow money to help his/her
small business or self-employed activity.
- First
loans are small. Ail loans must be paid back in
six months. Once a loan cycle (six months) is complete,
members may take out larger loans in the next loan
cycle.
- Members
can continue to borrow larger amounts up to $300.
The next chart shows the amount each member may
borrow every six months. We call these six month
terms a loan cycle.
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3.
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4.
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| Some
Sample Loan Rules
- Once
members reach the $300 limit they may keep borrowing
at that limit.
- Members
may choose not to borrow during a loan cycle but
they cannot skip loan maximums. For example a member
may borrow $50, choose not borrow during the next
cycle and then borrow $100. They cannot skip to
$150.
- Members
may borrow less than the loan maximum, but never
more.
- Members
may take out only one loan per cycle.
- Credit
Groups must make payments to MicroStart on their
loan every two weeks (bi-weekly). On a $100 loan,
bi-weekly payments are $12 each, of which $2 is
interest and $ 10 is a portion of the principal.
At the end of the loan cycle, the loan must be fully
repaid.
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5.
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| What
are the Requirements to Get a Loan?
- You
must join a Credit Group.
- A
Credit Group is a group of 5 to 15 self-employed
people from your community who pursue their own
business activi- ties, but provide joint guarantees
for each other's loans.
- Credit
Group members apply for loans by completing loan
ap- plication forms with the help of the Field Agent.
- Credit
Group members review and approve all loans submitted
by members of their own group. No one else approves
your group's loans.
- Any
member of a Credit Group may apply for a loan. The
group decides whether or not the applicant will
receive a loan.
- After
initial loans in a Credit Group are paid back at
the end of a loan cycle, group members may apply
for new loans.
- No
member of a Credit Group may receive a loan unless
all loans in that group have been fully repaid.
- If
one member is behind in his/her payments, other
Credit Group members must pay back the loan for
him/her. If the member fails to pay his/her group,
he/she will not be able to borrow again.
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6.
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| How
Do I Form a Credit Group?
A
Credit Group takes a few weeks to form;
Your Field Agent will help you with every step;
First, find 5 to 15 members of your community whom
you:
- know
well;
- trust
and respect;
- has
an economic activity that earns enough to repay
a loan.
Your Field Agent will help your group:
- decide
the frequency of group meetings (weekly or twice
a month is recommended);
- create
bylaws for joining and for approving loans;
- elect
group leaders.
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7.
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| How
Do I Get a Loan?
- Each
member of the Credit Group completes a loan application
and loan appraisal form.
- The
Credit Group votes to approve, reject, or modify
the loan.
- Your
Field Agent will make a visit to each of your activities.
- The
Loan Manager of the project will visit your Credit
Group and ask some questions. If your Credit Group
seems ready, the Loan Manager will certify the Credit
Group.
- Once
you are certified, your applications will be processed
and you will receive one Credit Group loan in a
few days. Your Group Treasurer will then divide
the money according to the loan requests of each
member in the group.
- Each
member makes a payment at group meetings.
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8.
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| Who
Can Join and How?
- Anyone over the age of 18 can join
a Credit Group as long as the members of the group
would like her (or him) to join;
- Only one member per household can
be in the same Credit Group;
- Only one loan per business or economic
activity;
- To begin the process of forming
a Credit Group, come to the first Group Development
Meeting on_________________.
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