"Every group member is embedded with moral responsibility of knowing each others financial and moral strength and that would help to check over-indebtedness of the members unless the whole group join to hide their weaknesses both moral and…"
"One should ensure that group is cohesive pursuing similar trade or business and supplement and complement each other as otherwise group would not be able to translate its activities into a viable hassle free economic activity ."
"Risk management is obviously would be better as the group consisting of people having varied insights and experience and if properly organized would provide good governance as some of them would have leadership quality and…"
"It is no doubt all the related matters are imperative to bear in mind to form a successful cluster group and the flexibility to adjust with economic environment and innovation would provide to more strength and stability to the…"
"I agree that any group pursuing similar economic activity would face calamity together but u forgot that when the same is shared by a group of people it would not be a killer as group would be having more mental and money power to withstand the same…"
"Thanks for bringing up the issue of graduation or evolution of the lending relationships. This is very important as groups have been historically inflexible. But, the question is, what kind of options work? Not all ways that institutions…"
"My understanding of shared economic interests does not necessarily go as far as having to engage in the same economic activity and same business. Indeed, insisting on this would undermine entrepreneurship.
I think what is important is that a group…"
"Having the whole group involved in a single economic activity (or the same economic activity) concentrates risk and essentially undermines the possibility of collecting on the guarantee. If all members are in the same business, they will all…"
"The issues of shared economic interest and dependency are absolutely critical and have a bearing on the issues to be discussed in the week of 10th Oct 2011.
Other related matters include:
1. Levels of entrepreneurship
2. The match between financing…"
"Group lending without group project for some economic and income generating activity would not be of much help to the poor and ultimately it would just become intermediary for loans to repay the loans and or multiple loans.
I do agree with your point. However, on the other hand, as group guarantee is a substitute collateral, it works for those very poor who have no any physical collateral for loans. The one economic interest, sometimes may create more problems…"
"I think it does not work in practical life as right loan product varies with individuals and with time, only when relates to their economic activities that generates income and help them to lead a healthy and happy life the right loan product could…"
"Why should we need peer presure? If we provide the right loan product to the client and analyze it prudently, we do not need any pressure from other. The only "presure" we need is from the debtor who are thankful for our loan support to…"
Peer pressure has been the main objective o group lending but experience has revealed it does not work unless mutual economic interest and dependence is created. It would therefore be imperative to get the group involved in a common project of farming or manufacturing.
It is often questioned that commercial activities should not be mixed up with social activities. This is not true if analysed in depth all activities lead to social good and when undertaken commercially such activities not only do god o the society but also earn some revenue for the doers.
Hello Souren - I agree that SPM should be "inbuilt" - integrated into every level of the organisation. What barriers do you see to this in terms of MFIs in India? Is it in terms of levels of understanding, or technical barriers, or incentives barriers?
I am happy to know that u r busy with Shri Jagat. I could help u with regard to management and finance model. I am interested in developing some training model for entrepreneurship develoment program for artisans and farmmers.where u must be aware of that there exist ample oppportunities. I would like to know what exactly we have in your mind about the Kolkata project.
Nice to hear from you. Shri Jagat Shah is busy with two main projects from GTZ and STQC on both of them I am also working in Rajkot. One is for development of engineering companies and another is related to IT- companies.
I need your guidance about my future as I am working with such projects.