As microfinance institutions mature, they need to modify their credit methodologies. This is necessary to broaden the range of services offered, to reduce the cost and to control credit risks for larger loans as the effectiveness of group-based joint liability decreases. In order to achieve these objectives, MFIs have started thinking beyond group lending as the only credit delivery methodology to individual lending systems – indeed this is a clearly defined global trend in microfinance. This toolkit specifically targets Credit Officers: At most institutions, Credit Officers must be everything and do everything. They must take a client through the lending process, from the first introduction to the MFI and products to full repayment of the loan. In some institutions, they underwrite several different types of loans, as well as sell many different types of bank products. The Credit Officer is expected to be in the field 80% of the time and cover as many potential borrowers as possible. Each Credit Officer will normally have about 250 – 300 accounts in his/her portfolio.
