UNCDF Microfinance Distance Learning Program

[Guest]

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[RichardF]

So... You like Kiva?  You like the idea of microfinance?  You want to learn more so you can be a snappy chatter at Kiva Friends?  Well then you've come to the right place!

The United Nations Capital Development Fund (UNCDF) Microfinance Distance Learning Program

"The Microfinance Distance Learning Course was designed for new entrants to the field of microfinance and has appealed to a broad range of people, including policy makers, donors, practitioners, academics and students. Staff of microfinance operations have found this course extremely useful - a chance to step back and see how their work fits into global microfinance initiatives.

"Through the self-training online tool, new staff of agencies working in development or staff engaged in other fields are able to expand their knowledge of microfinance as an important part of efforts to fight poverty and contribute to the achievement of the Millennium Development Goals."

Registration is free and you also can study a Course Workbook, review a list of Additional Readings and refer to a Glossary.

The following modules can be taken in any order, even though some questions assume you know material in earlier modules.

I. The World of Microfinance
   * Fundamental Concepts

• Myth or Fact
  
• Why Microfinance
  
• The Goal of Microfinance
  
• Key Operating Principles of Microfinance
  
• Evolution of the Field of Microfinance
  

   * Clients and Services

• Myth or Fact
  
• Financial Management in Households
  
• Effective Savings and Credit
  
• Using Credit: Three Case Studies
  

   * Microcredit Methodologies

• Credit Products and Methodologies
  
• Effective Methodologies
  
• Comparison of Methodologies
  
• Tailoring Delivery
  
• Why Adaptation is Important
  

   * Effects of the Local Environment

• Self-Assessment
  
• Economic/Social Policy Environment
  
• Regulation and Supervision
  
• Self-Assessment Revisited
  

II. Financial Analysis
   * Reading Financial Statements

• Balance Sheets
  
• Income Statements
  
• How They Relate
  

   * Measuring Delinquency

• The Portfolio and the Portfolio Report
  
• Why Measure Portfolio Quality?
  
• Measuring Portfolio Quality
  
• Effect of Loan Loss Provisions and Write-Offs
  
• Maintaining High Portfolio Quality
  

   * Key Financial Factors

• Financial Projections: Khaled's Example
  
• Factors Affecting Income
  
• Factors Affecting Expenses
  
• Factors Affecting Growth
  

   * Interest Rate Practices

• Charging Commercial Interest Rates
  
• Types of Interest Rates
  
• Estimating Annualized Effective Interest Rates
  
• Pricing Structures
  

   * Measuring Financial Viability

III. Institutional Analysis
   * Gauging Institutional Viability

• Components of Institutional Viability
  
• Some Measures of Institutional Health
  

   * Donor/MFI Relations

• An Institutional Perspective
  
• An Effective Funding Relationship
  

Just one example of how the course relates to Kiva and Kiva Friends is at the discussion, MFI Interest Rate.  The document, CGAP. "Microcredit Interest Rates," Occasional Paper No. 1, August 1996 (pdf) provides an excellent background to the issue of how borrower interest rates are calculated and reported by MFIs.  This issue is by no means resolved by Kiva through its current Field Partner interest rate reporting method.

[Henry]

I've found KIVAfriends is a great place to discuss and learn 'the basics' about microfinance.  Now if you want to really be or feel important and join in top level discussions where you can discuss the REAL issue of Microfinance...do a search, you'll be amazed at what's out there! Most of it scares the heck out of me! A lot of it ends up copied here. No problem with that,  If that weren't happening some of us wouldn't ever read it!

http://www.microfinancegateway.org/ is just one example of information out there.

[RichardF]

See Microfinance Web Sites for a list with descriptions on this topic.

[Dottie b]

I've found KIVAfriends is a great place to discuss and learn 'the basics' about microfinance.  Now if you want to really be or feel important and join in top level discussions where you can discuss the REAL issue of Microfinance...do a search, you'll be amazed at what's out there! Most of it scares the heck out of me! A lot of it ends up copied here. No problem with that,  If that weren't happening some of us wouldn't ever read it!

http://www.microfinancegateway.org/ is just one example of information out there.

Scares you in what way, Henry?

Dottie B

[Dottie b]

I'm doing the learning program. It's fascinating, and goes very fast! Very simply presented, but I'm learning a lot! My conception of credit was very different from what works for microfinance clients! The program also has a list of suggested reading of online articles.

I recommend it highly! And you can't beat the price! <g>

Dottie B

[Henry]

scares me....  i'm against work!! it looks complicated....I found some site that has something called a "Heat Chart"  I opened it, and felt flush.   

[Dottie b]

At least the UNCDF course isn't complicated! 

Dottie B

[RichardF]

Henry! They have Excel spreadsheet loan interest rate calculators you can download!!!

 

[Henry]

again, not the number i'm looking for.   

 

[RichardF]

8
Was that it?! 

Dan, they also show a way to calculate what interest an MFI "should" charge to be "sustainable."  Comparing that to the actual rate gives MFIs (and anyone else they let see it - haven't seen one) a way to judge whether the actual rate is "fair," "predatory," "scammy" or whatever.