Group and individual lending within Microfinance

Abstract

The study sets out to compare the group and individual lending methodologies within microfinance, with the ultimate aim of determining whether there is scope for a Maltese organisation to implement its small scale microfinance project in more developing countries. My study follows up a previous one in recent years; which had attempted to establish whether this organisation could initiate a microfinance project, and which has now been commenced. This was done by researching the subject, especially through publications and research carried out previously, as well as a review of some beneficiaries' experiences with microfinance programmes. Consequently, interviews were carried out with potential administrators of the project, and the results analysed. Generally, the findings from the fieldwork contradict literature, many respondents voiced negative opinions when asked about the implementation of a microfinance program. However, they do so on a reasonable basis, considering the context of the fieldwork, and the respondents' occupation. Mainly, the conclusion derived was that there is the potential to implement a microfinance project in some locations, given the response of the interviewees. Such a project would be based on a group-lending scheme, having acknowledged the fact that the potential clients are mostly absolute poverty cases.