In my last post, I asserted that motivation is the key to good repayment rate.
It is a salient part in our series on Credit Discipline in Microfinance.
For now,we have to caution you before you engage in microfinance program, we need to know first the phases of motivation.
Pre Loan Motivation
Pre-Entry Motivation is seen to build on the prospective member’s life goals and show how using credit (and in this case, using the microfinance) to develop a business and how can it help her realize her family goals.
Pre-Loan Motivation is initiated through meetings prior to Comprehensive Group Trainings (CGT). This stage of motivation should include the prospective member, her family and intended groups mates.
The expected outcome of this motivation phase is that these prospective members, with the support of their families, will form group and become good and productive members of the program.
On-Going Motivation is focused on Credit Discipline and influences to achieve good repayment. To maintain this, we need to utilize several forms of external motivation to activate internal values within the member and her family.
We have to first focused on the benefits of positive motivation forms. The positive motivation forms are:
- Efficient Services and Operational Procedures
- Effective Social Development Programs
- Participative Program Development and Problem Solving
- Adaptable Loan, Savings and Micro-Insurance Products and other related Services
- Realizable Incentives
The Negative Motivation Forms are:
- Peer Pressure
- Credit Rating, and
Continuous Client Motivation is a process. And, it is a challenge for those who are implementing Credit Discipline among members. A microfinance program can become successful or a failure through this.
A shortcut on this motivation process is a shortcut to an impending failure of your microfinance program.
You can only have effective motivation if you know your prospective members.
I will be dealing on each of the motivation forms in my succeeding posts.
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photo credit: Lucinda Alonzo via photopin (license)