The main Programme objective is to provide financial resources for small business parties by affording access to credit resources of Belarusian commercial banks.
The main directions of Programme activities:
- Implementation of Credit technologies;
- Building effective organizational structure at the participating banks;
- Loan Experts training;
- Development and introduction of new credit products.
The main objective of the first Programme development stage was introduction of new technologies and creation of effective microlending units at the participating banks through consulting and staff training. Now these units are operating successfully and banks are setting up similar units all over the Belarussian regions. That is why the main objective of Belarus Microlending Programme is to make credit resources accessible to smallest individual entrepreneurs, who work at distant regions, as well as to assist in improvement banks' competition for the clients.
The main Programme operating principle is to build up trustworthy relationship between a client and a bank. Most of the clients are individual entrepreneurs with no previous experience of dealing with banks. However, a large number of clients who once have taken a loan under the Programme apply again, and not only for loans, but for other bank products as well. Thus, by supplying a good quality product and high level of service, the Microlending Programme "raises" a client for a bank.
Cooperation with Partner-Banks
As a rule BMLP consultant technical cooperation scheme is build up as follows.
On the early stage of cooperation with a partner-bank the authorised BMLP consultant in close collaboration with the bank management works out a microlending development schedule. He takes part in staff selection and training, development and implements new products, field work and working processes organisation, loan procedures development, as well as bank local instructions and internal statements. On the next stage he coordinates microlending department activities, consults loan officers on everyday issues, controls loan officers training and, as a rule, participates in Credit Committee which takes loan decisions.
As soon as the bank does not need any support the consultant delegates his administrative duties to the bank staff, reduces his participation in current credit activities of the bank and delegates the loan decision authority within certain limits to the bank officers. On this stage special focus is set on priority regional personnel training and consulting of newly set up microlending units in regions and other bank branches, as well as on maintenance and monitoring of the loan portfolio of the Programme, up-dating and improvement of loan procedures, and new products introduction. Further on the consultant objective trains the personnel to perform the above mentioned functions without an outside support and this step finishes up his consulting activities in the bank.
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