Borrowers and lenders within the rapidly maturing microfinance sector are now presented with a range of new opportunities. Increasingly, mature clients with an impeccable credit history and accompanied with a viable business plan, are in a position to command higher loan amounts within the new methodology of Individual lending. This model provides credit access to individual borrowers who are selected on a discretionary basis. They often have at least some small form of fixed assets or income. The need for this product seems to be quite high among mature clients who typically require loans which are double the amount received as an ordinary borrower.

Last year, the MSU initiated a survey and pilot with its partner MFI Cashpor in two districts of Uttar Pradesh to assess the extent and nature of this demand for higher amounts by a certain set of individuals. It was observed that those among the poor who had successfully undergone three loan cycles and had managed to avoid slipping into indebetedness often demonstrated a latent need for higher loan amounts in subsequent loan cycles.
Thus while the average loan amount for a Cashpor client in a typical loan cycle of a year is Rs 4,000 (USD 89), there are some who are capable of turning in positive cash flows after a healthy credit record of three years and require a loan amount of Rs 20-25,000 (USD 444-555) to do so. In other words they require  loans out of the constraints of the group lending model.
For the purpose of the study, MSU randomly identified 275 clients of Cashpor from a set of around 25,000 mature clients in Mirzapur, Ghazipur and Balia districts. A survey was carried out and it was found that 33 per cent of those sampled (from among those who were seeking higher loans) had the requisite cash flows to sustain their higher loans. Most of the businesses comprised  petty trading units like provisions stores, bangle shops, electric and motor repairing units and small dairy enterprises with two or three animals.
A product titled Microenterprise loan was drafted and will soon be offered on a  pilot basis across select branches in Mirzapur and Ghazipur. As in the case of the group, loan payments will take place at the branch and on a weekly basis although the guarantee will not be offered by the group. Instead the guarantee will come from any one of the group members to which the member belonged. Based on initial response, Cashpor plans to scale up the product at all its mature branches in keeping with demand.