what is the best way to handle microcredit?

Question

In India Microcredit is not so successful as inBangladesh.I am in interested in developing a model for use in the State i Live.I am not fully conversant with complete details of Bangladeh model

Answer 1

Hi

It depends on the type of clients you target, rather urban or rural.

There is two methodologies. One is individual lending, so close from the usual bank credit and the other you referred, group lending such as Grameen Bank which better fits in rural areas.

I have worked in Bangalore and I would rather support the individual methodology, which gives more freedom and less transaction costs for the clients. Handling correctly microcredit is complex, I would recommend you to visit the ACCION and CGAP web sites which will allow you to download good quality working papers first.

Hope this helps