The note discusses the prevalence of group lending methodology which has been in existence for quite some time now. Majority of the MFIs use this methodology for their operations and are well versed with its nuances. Micro and small enterprises lending has emerged out as a new product that many MFIs have started to offer to their clients. MSME financing being a completely different product requires different set of skills all together. It has its own customised lending processes and operations. This note attempts to substantiate the various important issues of the lending cycle for individual loan.