Report Regional Microfinance Development Project NTB The Household Survey

This survey aimed to:

• Learn the characteristics of the households' demand for financial services in the Nusa Tenggara Barat Province (NTB), Indonesia;
• Investigate perceptions of the microfinance supply by the demand side.

The survey:

• Analyzed secondary and primary data concerning the current market of microfinance services;
• Collected secondary data from microfinance institutions (MFIs) and primary data through a sample survey.

It found that:

• Most households regularly saved their excess incomes in and borrowed loans from commercial banks and non bank financial institutions;
• They used their savings mainly for child education and loans for working capital;
• They perceived that financial services should apply interest to the clients - borrowers should be capable and repay their loans;
• They believed that the provision of microfinance services could be sustained through good and honest management, and demand driven and convenient services.

The survey concluded that:

• There exists a large potential for saving mobilization and effective financial intermediation;
• Households were accustomed to savings and the application of interest rates on financial services;
• Awareness of the responsibility of loan borrowers prevailed among households;
• These provide the basis for the use of the financial system approach for further development of the rural microfinance sector in the province;
• A limited role of the village MFIs in the mobilization of the households' savings may serve as an evidence of gaps existing in the rural financial market.