mca bai tushum financial fund sustainability in rural finance may 2006
TRANSCRIPT
![Page 1: MCA BAI TUSHUM FINANCIAL FUND Sustainability in Rural Finance May 2006](https://reader036.vdocument.in/reader036/viewer/2022062408/56649f165503460f94c2c834/html5/thumbnails/1.jpg)
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MCABAI TUSHUM FINANCIAL
FUND
Sustainability inRural Finance May 2006
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BAI TUSHUM – An Overview
Chartered in October 2000 Founders – ACDI/VOCA and CARITAS TA Funding: USAID and SDC Legal Status: Non-commercial Public Fund,
reregistered as MCA on February 13,2003,certified by National Bank
Three branches and 10 sub-offices
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Loan Methodology
Loans to farmers, entrepreneurs and legal entities Loan size: 250 to 36,000 dollars Loan term is 12 - 18 months Grace period is 6-11 months for agricultural loans. Market based interest rates
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Loan Methodology
Individual lending under collateral Rural and agricultural group lending ( max
$500), solidarity responsibility Lending group of clients under one
immovable property
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Challenges in rural lending
Influence of climate conditions Failure of crops, plague of cattle Unstable prices on production Non-liquid collateral Traditions
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Reducing risks in rural lending
• Flexible repayment graphic• Fast service• Well documented polices and procedures • Cooperation with rural authorities• Availability of additional income of clients• Diversification portfolio by agricultural
products
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Performance indicatorsas of on April 1,2006
Loan outstanding- USD 7,717,000 Active clients-4,014 Operational self efficiency-131% Financial self efficiency -126% Repayment rate – 99.27% PaR>30 - 0.84% Leverage ratio- 217% Portfolio growth 2005- 95%
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Growth of loan portfolio and number of clients
-500
1 0001 5002 0002 5003 0003 5004 0004 500
-1 0002 0003 0004 0005 0006 0007 0008 0009 000
Активные клиенты Портфель
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Number of disbursed loans
0
500
1000
1500
2000
2500
31.12.2001 31.12.2002 31.12.2003 31.12.2004 31.12.2005
agrigulturalloans
trade andservirces
mortgage
consumerloans
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Financing
EBRD IFC Blue Orchard Hivos-Triodos Frontiers Local commercial Bank ( hedging scheme)
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Transformation& commercialization
December 2005- Microcredit Company was registered ,LLC
Assests&debts transfers Equity investors January 2008- MCC will be transform to MFC
( deposits taking), LLC will be transform to JSC
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Strategic Objectives
Microfinance Company, deposit taking MFI New products and services Equity investment Geographic outreach