NEW PARADIGM - RURAL FINANCIAL SERVICES

THE TEN COMMANDMENTS TO ESTABLISH SUCCESSFUL RURAL FINANCIAL SERVICES USING NEW PARADIGM APPROACHES:

1) New ideas of income generation schemes could be introduced but borrowers themselves should decide how they will use their loans to be responsible for the repayment
2) facilitating families, groupings, associations
as poor clients are empowered by groupings
3) encourage savings and economizing skills to practice well ahead for the repayment of the loan
4) including women as important clients in loan schemes for their reliabilities
5) interest rates should be flexible so that the project is sustainable for the financial institution
6) as governments are too beaurucratic and politicaly inclined their interventions should be to regulate not financing the projects
7) NGOs and banks should be encouraged to launch financial schemes and not be interferred by government's targeting projects
8)duration should be flexible and shorter for sustainability of repayments
9) repayment should be very strict and monitored for continuity of the project
10) micro lending is not sufficient for poverty alleviation, education and other development infra structure are to be maintained

http://www.ruralfinance.org/lessons/pdf/lesson01_summary.pdf