FIN 055

ORAL EXAMINATION FOR FIN 055

What are the steps involved in selecting a potential area for microfinance operations?

1. Conduct area scanning/mapping 2. Coordinate with concerned government office 3. Review barangay profile 4. Conduct area survey 5. Conduct interviews 6. Process survey and interview results 7. Submit results to branch manager.

What is a Barangay Profile?

A description of the physical and demographic characteristics, economic status, and basic services available in an area.

What are the 4 Ps of Marketing in Microfinance?

1. Product - actual products and services that the MFI offers to its clients.

2. Price - cost or value of availing the product and services

3. Place - location and channels of accessing the products and services

4. Promotion - means of communicating product value to clients.

What are the general criteria for selecting a potential area for microfinance operations?

1. Enough number of potential clients

2. Distance and accessibility from the office 5-7 km

3. Transportation

4. Existing microeconomic activities

5. existing MFIs and lending institutions

6. Peace and order

7. Presence of banks for deposits.

What is the purpose of conducting interviews in microfinance operations?

To validate data gathered from secondary sources and make informed recommendations to the Branch Manager.

What does CIBI stand for in the context of microfinance?

Credit Investigation and Background Investigation.

What are the 5 Cs of credit in microfinance?

1. Capital

2. Capacity

3. Conditions

4. Collateral

5. Character.

What is the procedure for processing loan applications?

1. Issue applications 2. Gather applications 3. CIBI check 4. Prepare summary of loan application (BLAS) 5. Recommend qualified loan applicants 6. Inform clients about application status 7. Release loan.

Why is a Loan Utilization Check (LUC) important?

It ensures that clients utilize the loan as intended, reducing delinquency and default risks.

What types of insurance products are commonly promoted in microfinance?

1. Death Insurance 2. Life Insurance 3. Disaster Insurance 4. Health Insurance.

What is the purpose of bookkeeping in microfinance?

To systematically record and maintain an organization’s financial transactions.

What does the Daily Collection Sheet (DCS) record?

It records all Loan Officer’s collections for the day, including CBU, LCBU, loan amortization, and other collected fees.

What should a Loan Officer do before leaving for fieldwork?

Compute target savings, life insurance, and loan collection for the day.

What is a Group Liability in microfinance?

Members of a group are collectively responsible for their loans.

What is the importance of preparing Daily Monitoring Reports in microfinance?

It is crucial for updating financial records and aids in the preparation of financial reports essential for management and decision-making.

What is involved in organizing a group of microfinance clients?

Conduct background investigations, assess personal and financial capacities, and organize groups for collective loan responsibility.