As microfinance institutions mature, they need to modify their credit methodologies. This is necessary to broaden the range of services offered, to reduce the cost and to control credit risks for larger loans as the effectiveness of group-based joint liability decreases. In order to achieve these objectives, MFIs have started thinking beyond group lending as the only credit delivery methodology to individual lending systems – indeed this is a clearly defined global trend in microfinance. This module is intended to guide credit managers in MFIs that are diversifying from group lending methodologies to individual lending
