Township-Based Microlenders: A Profile
This paper presents:
- A profile of the microlenders operating in townships;
- Views of the microlenders on:
- Regulatory environment;
- Constraints and challenges faced;
- Their potential roles.
The paper states that the research methodology followed was:
- Stakeholders interview;
- Detailed questionnaire.
The paper also provides an overview of international experience with respect to money lenders. It describes the profile of the lenders, including:
- Legal status;
- Human resources and capacity;
- Clients profile and target market;
- Loan size and loan application processes.
The paper examines microlending business with respect to:
- Modes of operation;
- Premises from where lending activities are carried;
- Engagement in other businesses.
As per the paper, the developmental needs of the lenders to ensure their growth and development include:
- Access to funding;
- Training in the areas of:
- Business management;
- Customer care;
- Regulatory issues.
- Awareness and education targeted at consumers allowing them to make informed decisions.
The paper concludes with specific aspects that could be addressed by the new regulator, Microfinance Regulatory Council (MFRC):
- Differentiation of lenders;
- Briefing about the objectives of the government;
- Communication of new regulations to microlenders;
- Provision of capacity building and training to: