SINCE there is a dearth of articles on terminologies and challenges in servicing the MSME sector, I decided to write one based on my own observations and point of view as an MSME lender.
As a point of reference for this write-up, I defined SME loan product as a "loan above P300,000 and can be payable over a year" since P300,000 is the ceiling we set for a microfinance loan amount. Which, then, leads me to my point: Why does a microfinance institution aspire to offer SME loan products and what are some operational challenges that keep them from starting?
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