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Introductory Presentation GRET-Chin MFI

Introductory Presentation GRET-Chin MFI. Background of the Chin-MFI.

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Introductory Presentation GRET-Chin MFI

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  1. Introductory Presentation GRET-Chin MFI

  2. Background of the Chin-MFI • In 1995, with support of UNDP/UNOPS project, GRET built a Network of Village Credit Schemes(VCS) in 2 Townships (Hakha & Tedim) for providing financial services. Then could have implemented one more township(Falam) in 1998. Thantlang township was extended in 2009 and Tonzang township was extended in 2012. • At the end of January, 2016, 153 VCSs/BCSs functioning with 9645 borrowers and a portfolio of 1,885.368 million MM Kyats in 5 Townships (Hakha, Falam, Tedim, Thantlang & Tonzang

  3. Back ground cont… The GRET micro finance program was supported by UNDP/UNOPS French Ministry of foreign affairs and Embassy Embassy of Japan Embassy of British Embassy of Australia Stromme Foundation(Norway) European Union(EU) Department For International Development (DFID,UK) Livelihoods and Food Security Trust Fund (LIFT)

  4. Current situation of MF program • Obtained Micro Finance License number 0001/2012 on 26th March 2012 • EU support(2009-2011) for extension to Thantlang Township, Micro Enterprise Loan, new Villages in Tedim Township and Member/staff trainings • DFID support for the extension to Tonzang township and new villages in the current townships in Tedim and Thantlang. • LIFT (UNDP project(2012-2014) for Wholesale Loans • LIFT(Legalization Process 2016-2018)

  5. Northern Chin State Tedim Falam Thantlang Hakha Tonzang (Not for scale)

  6. Approach of GRET-Chin MFI • Decentralized management of the Village /Block Credit Schemes(VCS/BCS) with a Management Committee (MC)(Leaders of Group of Five) and Credit Committee(CC) (3/2 members) • Three main loan products: • Group Loan (guarantee of group of five members) • Micro Enterprise Loan (guarantee of 2 collaterals) • Wholesale loan(Contract with SRG group)

  7. Approach of GRET-Chin MFI cont. Training of Credit Committee on financial and management aspects, Training of Management Committee on small business management, leadership & economic development

  8. Mission / Vision To improve the livelihood of the villagers, Chin- MFI is aiming to support the development of the economic activities by providing long-term financial services. The main values are self-reliance, the transparency and accountabilities of the organization

  9. Objectives of chin MFI To give access to savings and credit services to the families who cannot give guarantee for bank’s loan To increase livelihood of the villagers through the development of income generation To implement sustainable financial savings and credit services aiming at the long- term development To provide education on the management of economic activities and understanding of market economy.

  10. Key figures of Chin MFI GRET-MFI situation - January, 2016

  11. Indicators –January 2016

  12. Organization Chart MANAGEMENT UNIT EXECUTIVE COMMITTEE MEMBERS + TOWNSHIP MANAGERS 12 EXECUTIVE COMMITTEE AUDITORS GENERAL MANAGER TRAINING & MONITORING OFFICER SECRETARY/ ACCOUNTANT OPERATIONS MANAGER FINANCE MANAGER FALAM MANAGER HAKHA MANAGER TEDIM MANAGER THANTLANG MANAGER TONZANG MANAGER 1 ACCOUNTANT 3 C S 1 CASHIER 1 ACCOUNTANT 3 C S 1 CASHIER 1 AT MANAGER 1 ACCOUNTANT 5 C S 1 CASHIER 1 AT MANAGER 1 ACCOUNTANT 5 C S 1 CASHIER 1 ACCOUNTANT 2 C S 1 CASHIER

  13. Hierarchical structure of Chin MFI Village level CHIN MFI GA Consultative Committee Township Level GA Credit Committee Management Committee Group of 5 Group of 5 Group of 5 Group of 5 Group of 5 Group of 5

  14. Credit Methodology The application of an interest rate The interest rate (2.5%) is introduced to be covered 2.2% fees to township 0.3% VCS’s running cost

  15. Credit Methodology Loan amount are reviewed and modified every 6-months according to inflation’s influence and capital needed of member’s project . Loan Type Group loan Individual loan (Micro enterprise Loan) Wholesale loan is disbursed to SRG

  16. Credit Methodology cont. Loan duration The group loan and wholesale loan are short-term loan. Not more than 12 months. The individual loan is not more than 18 months. Method of payment Monthly interest payment and the loan capital is at the end of the loan duration Monthly installments including both of capital and interest.

  17. Financial products • GROUP LOAN PRODUCT • Aims to support families without material guarantee & out of mainstream financial systems • Group of Five members • Loan duration: up to 12 months • Amount: 160000, 180000, 200,000 Kyats • Interest rate: 2,5% per month

  18. Financial products cont. • MICRO ENTERPRISE LOAN PRODUCT • Aims to support families willing to upgrade their economic activities and start small enterprises • Guaranteed by 2 persons • Loan duration: up to 18 months (20% of capital repaid after one year) • Grace periods- up to 3 months. • Loan Amount: 600,000 to 1,000,000 Kyats • Borrowers were trained on Small Business Management, Value Chains & attending some vocational trainings.

  19. Financial products cont. WHOLESALE LOAN PRODUCTS To implement further development and progressively roll-out of new micro-finance to SRG • SRG already formed by UNDP • Self reliant and functioning groups • 12 months duration (2.5% interest rate) • Installment repayment (from 6 months) • Loan amount Ks 1,500,000 to 2,500,000.

  20. Micro Enterprise project by a woman client Collected Ginger tubers – drying and grading

  21. Small grocery at home Micro Enterprise Loan Borrower

  22. Non-financial services- trainings and workshops Workshop on small business management and value chains improvement

  23. Women group in learning vocational training on off-farm activities and food processing

  24. From village to village Cross visit and exposure visits

  25. Challenges and ways forward Government loans with low interest rate Variety of poverty alleviation project loan with low interest rate. Migration that decrease households and increase member drop out. Not have more new area for extension in Chin State The inflation rate of Myanmar in the past Trainings, Cross Visits and Exposure Visit will be implemented to both of members and staff .

  26. Thank You

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