The primary goal of the assignment was to demonstrate the practical usage and impact of key approaches for achieving commercially viable and customer oriented micro-credit operations.

The technical assistance provided by BFC's experts consisted of three main components:

1. piloting of a loan product for urban microenterprises;
2. demonstration of core features of lending policies and procedures;
3. training of loan officers and managers.

As part of this assignment BFC supported PSBC in:

• Developing and guiding the launch of a new collateral-free product for urban microenterprises with a maximum loan amount of RMB 50,000 (approximately USD 1,300);
• Conducting a three-day seminar for 13 loan officers and managers of PSBC on financial analysis of microenterprises;
• Developing and Introducing policies and procedures for microlending in the areas of marketing, credit analysis, monitoring, and collections;
• Providing day-to-day training to loan officers by participating in interviews with clients and analyzing their businesses;
• Providing recommendations to PSBC on further development of the microlending program and to GTZ on future cooperation with PSBC.