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Target Clientele
The target clientele for MBBL are women from households whose annual income is below Rs.5,500 & Rs.4,400 and irrigated land holding is less than an 15 Kattha & 20 ropani in Terai and Hill respectively. Each of the Methodology process is designed to maximize the power of peer pressure and to reduce the risk of moral hazard, the risk that our borrowers will not repay. By creating homogenous groups, each with equal stature and influence over the other, the power of peer pressure can work. Repayment is also more assured if our clients are physically able and are rooted in the local community (i.e. which excludes migrants and unmarried women). Therefore, each women member must:
- Not be a blood relation to any other member in the group For eg. Mother and Daughter
- Be married
- Live in a permanent residence
- Be over 18 and less than 55 years of age
- Be from a similar socio-economic background
- Be from the same neighborhood, who know each other and trust each other well in financial transactions
- Not be a membership in other MFIs
IDENTIFICATION AND ENROLMENT OF TARGET CLIENTELE
The process for enrolling our target clientele into groups is as follows
- Selection of Area of Operations
- Village Survey & Gathering House hold information
- Promotional Meeting
- Pre Group Training
- Group & Center Formation
- Group Recognition Test
- Monthly Meetings
SERVICE DELIVERY METHODOLOGY
Microfinance program of MBBL provides financial services to groups of five women who meet monthly with at least two groups to form a centre. Loans are made to individual members but the group agrees to guarantee the payments of all group members in accordance with the JLG methodology. The JLG methodology works to everyone's advantage. Through the use of the joint liability guarantee, our clients, who most often do not have any collateral, are able to access credit. The group methodology also provides built-in support for our clients, both in good times and bad.
