Who are the customers of microfinance institutions (MFIs), and what products and services do they use?
The customers of MFIs are microentrepreneurs, many of them women. Often they run small or microbusinesses in the informal sector. Small loans, short terms, a high number of repayment installments and a close relationship with customers reflect the needs and circumstances of microentrepreneurs. Credit officers maintain close contact with microentrepreneurs, sometimes visiting their customers on a weekly basis. Appropriate mechanisms such as group lending and solidarity groups compensate for the lack of collateral. MFIs are responsible for selecting their customers and granting and overseeing loans.
