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Micro finance and Enterprise Development

The goal of Microfinance & Enterprise Development (MF&ED) section is to fill the vacuum in institutional credit that hinders the poor from improving their activities in the production and social development sectors. The MF&ED programme aims to make small credit more accessible to the vulnerable communities in the fields of agriculture, livestock, small & medium enterprises, social development and general health. Accessibility will be improved by reaching out to the user groups, reducing complicated procedures, and accepting group collateral as security. MF&ED also aims at upgrading managerial and production skills related to the activity and providing guidance and linkage for marketing.
Components:
Strategic components of MF&ED include:

  • Rural micro credit, through Village Banking;
  • Urban micro credit, through small Group lending;
  • Enterprise development (business management training is a key part);
  • Micro insurance;
  • Micro savings;
  • Creation of Linkages (e.g., of communities with financial institutions);
  • Project based interventions.

In these components, a focus is on Outreach, Innovations and Capacity Building.

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Progress under MF&ED

MF&ED’s first year of operation shows several major achievements. The most important of these were the design of credit policies, development of the credit programme and signing of MoU with Bank of Azad Jammu & Kashmir (BoAJK). By June 2011, credit programmes and credit lines had been developed for agri-inputs, enterprise development, livestock development and social development. Credit disbursement initiated in September 2011.

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Case study Microcredit

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Achievements

Loan Products

Agriculture Loan
Ceiling Up to Rs. 10,000 for a season
Loan Period 6 to 12 months
Repayment Mode Lump sum – within a month after harvesting, while option is available for monthly repayments in case credit is obtained for feed/fodder
Loan Period 6 to 12 months
Working Capital Finance (WCF)
Ceiling Up to Rs. 30,000
Loan Period 6 to 18 months
Repayment Mode Monthly installment. Maximum grace period to start installments is one month.
Ceiling Up to Rs. 30,000
Livestock Loan
Ceiling Up to Rs. 20,000
Loan Period 12 to 18 months
Repayment Mode Monthly installment. Maximum grace period to start installments is one month to be decided on case-to-case basis while option is available of lump sum repayments in case of loan for fattening/breeding of goats/sheep.
Consumption Loan
Ceiling Up to Rs. 20,000
Loan Period 12 to 18 months
Repayment Mode Monthly installment. Maximum grace period to start installments is one month.

 

Micro Credit under Core Program (Progress as of May 2012)

Sr # Activity Mirpur Bhimber Cumulative

Total

Men

Women

Mix

Total

Men

Women

Mix

Total

Men

Women

Mix

1

Credit Groups

158

-

158

-

228

-

228

-

386

-

386

-

2

Total Clients

469

469

   -

682

-

682

   -

1,151

-

1,151

-

3

Active Clients

465

-

465

   -

672

-

672

   -

1,137

-

1,137

-

4

Enterprise (PKR) 2,115,000 1,995,000 4,110,000

5

No of Clients in Enterprise 138 155 293

6

Social Development (PKR) 4,240,000 4,270,000 8,510,000

7

No of Clients in SD 301 367 668

8

Livestock (PKR) 365,000 1,710,000 2,075,000

9

No of Clients in LS 25 150 175

10

Agriculture (PKR) 15,000 - 15,000

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 Number of Clients in Agriculture 1 - 1
Total Disbursement (PKR) 6,735,000 7,975,000 14,710,000

 

Type wise disbursement

Loan Type Men %age Women %age Total
Enterprise - 0% 4,110,000 28% 4,110,000
Livestock - 0% 2,075,000 14% 2,075,000
Agriculture - 0% 15,000 0.1% 15,000
Social Development/Consumption - 0% 8,510,000 58% 8,510,000
Total 0% 14,710,000 100% 14,710,000

 

Progress under Matching Fund Component of AJKCDP’s Phase II (October 2011 & onwards)
Summary of Progress under Matching Fund Component of AJKCDP’s Phase II

 

Credit Disbursement (RS.) Progress % age
No of COs    provided Matching Fund

35

100%
Men Cos

20

57%
Women Cos

6

17%
Mix Cos

9

26%
Total Disbursement (Rs.)

4,073,460

100%
Agriculture

5,000

0%
Livestock

2,378,460

58%
Enterprise Development

1,690,000

41%
Disbursed to Men (Rs.)

2,701,460

66%
Disbursed to Women (Rs.)

1,372,000

34%
# of Loans    (Total)

181

100%
Men

110

61%
Women

71

39%
Agriculture

1

100%
Men

1

100%
Women

-

0%
Livestock

105

100%
Men

45

43%
Women

60

57%
Enterprise    Development

75

100%
Men

64

85%
Women

11

15%

COs provided Matching Fund

Districts

No of COs provided Matching Fund

Men

Women

Mix

Total

Muzaffarabad 1 1 - 2
Hattian 1 1
Mirpur 2 - - 2
Kotli 6 2 1 9
Bhimber 2 - - 2
Poonch - - - -
Sudhanoti 7 1 8 16
Bagh 1 2 - 3

Grand Total

20 6 9 35

 

Progress under Matching Fund Component of AJKCDP’s Phase II (October 2011 & onwards)
District/Sector Wise Number of Loans and Disbursed Amounts (October 2011 & May 2012)

Districts Gender Enterprise Development Livestock Agriculture Total
No of Loans Amount Disbursed No of Loans Amount Disbursed No of Loans Amount Disbursed No of Loans Amount Disbursed
Neelum Men
Women
Total
Muzaffarabad Men 1 20,000 1 5,000 2 25,000
Women 100,000 5 100,000
Total 1 20,000 5 100,000 1 5,000 7 125,000
Hattian Men 8 165,000 7 140,000 15 305,000
Women
Total 8 165,000 7 140,000 15 305,000
Mirpur Men 7 190,000 3 90,000 10 280,000
Women
Total 7 190,000 3 90,000 10 280,000
Kotli Men 3 85,000 13 340,000 16 425,000
Women 2 60,000 2 60,000
Total 3 85,000 15 400,000 18 485,000
Bhimber Men 7 195,000 1 25,000 8 220,000
Women
Total 7 195,000 1 25,000 8 220,000
Poonch Men 2 50,000 2 50,000
Women 6 80,000 18 320,000 24 400,000
Total 8 130,000 18 320,000 26 450,000
Sudhanoti Men 36 810,000 21 586,460 57 1,396,460
Women 7 162,000 7 162,000
Total 36 810,000 28 748,460 64 1,558,460
Bagh Men
Women 5 95,000 28 555,000 33 650,000
Total 5 95,000 28 555,000 33 650,000
Grand Total Men 64 1,515,000 45 1,181,460 1 5,000 110 2,701,460
Women 11 175,000 60 1,197,000 71 1,372,000
Total 75 1,690,000 105 2,378,460 1 5,000 181 4,073,460

 

Summary of Progress under Matching Fund Component of AJKCDP’s Phase I

(March 2010 to June 2011)

Credit Disbursement (RS.) Progress % age
No of COs provided Matching Fund 391
Men Cos 188 48%
Women Cos 99 25%
Mix Cos 104 27%
Total Disbursement (Rs.) 94,666,000
Agriculture 720,500 76%
Livestock 41,765,500 44%
Enterprise Development 52,180,000 55%
Disbursed to Men (Rs.) 54,633,000 58%
Disbursed to Women (Rs.) 40,033,000 42%
# of Loans (Total) 4,890
Men 3,053 62%
Women 1,837 38%
Agriculture 65
Men 50 77%
Women 15 23%
Livestock 1,890
Men 970 51%
Women 920 49%
Enterprise Development 2,935
Men 2,033 69%
Women 902 31%

COs provided Matching Fund

Districts Field Unit No of COs provided Matching Fund
Men Women Mix Total
Neelum Neelum 5 1 0 6
Sub-total 5 1 0 6
Kotli Kotli 55 45 30 130
Nakial 47 27 70 144
Sub-total 102 72 100 274
Bhimber Bhimber 39 5 3 47
Samahni 2 - - 2
Sub-total 41 5 3 49
Mirpur Dudyal 11 6 0 17
Mirpur 29 15 1 45
Sub-total 40 21 1 62

Grand Total

188 99 104 391

Sector Wise Number of Loans and Amount Disbursed under Matching Fund

Districts Field Unit Gender Enterprise Development Livestock Agriculture Total
No of Loans Amount Disbursed No of Loans Amount Disbursed No of Loans Amount Disbursed No of Loans Amount Disbursed
Neelum Neelum Men 92 1,370,000 45 465,000 2 20,000 139 1,855,000
Women - - - - - - - -
Sub-total 92 1,370,000 45 465,000 2 20,000 139 1,855,000
Kotli Kotli Men 658 1,643,000 299 7,001,000 8 62,000 965 8,706,000
Women 234 4,705,000 408 9,229,000 5 68,000 647 14,002,000
Nakial Men 945 22,299,000 279 6,441,000 7 52,000 1,231 28,792,000
women 618 13,632,000 391 8,984,000 5 68,000 1,014 22,684,000

Sub-total

2,455 42,279,000 1,377 31,655,000 25 250,000 3,857 74,184,000
Bhimber Bhimber Men 187 3,693,000 206 4,084,000 13 90,000 406 7,867,000
Women 10 115,000 23 523,000 - - 33 638,000
Samahni Men 6 170,000 8 150,000 2 40,000 16 360,000
women - - - - - - - -

Sub-total

203 3,978,000 237 4,757,000 15 130,000 455 8,865,000
Mirpur Dudyal Men 51 1,366,000 60 1,370,000 4 40,000 115 2,776,000
Women 6 100,000 35 700,000 41 800,000
Mirpur Men 94 2,235,000 73 1,806,500 14 235,500 181 4,277,000
women 34 852,000 63 1,012,000 5 45,000 102 1,909,000

Sub-total

185 4,553,000 231 4,888,500 23 320,500 439 9,762,000

Grand Total

Men 2,033 32,776,000 970 21,317,500 50 539,500 3,053 54,633,000
women 902 19,404,000 920 20,448,000 15 181,000 1,837 40,033,000
Total 2,935 52,180,000 1,890 41,765,500 65 720,500 4,890 94,666,000