Chin MFI presentation

Date - Lieu Introductory Presentation GRET-Chin MFI Background of the Chin-MFI • In 1995, with support of UNDP/UNOPS project, GRET built a Network of Village Credit Schemes(VCS) in 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 Townships (Hakha, Falam, Tedim, Thantlang & Tonzang 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) 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) Northern Chin State Tonzang Tedim Fa lam Thantlang Hakha (Not for scale) 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 collaterals) • Wholesale loan(Contract with SRG group) 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 Mission / Vision  To improve the livelihood of the villagers, ChinMFI 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 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 Key figures of Chin MFI GRET-MFI situation - January, 2016 10 Villages VCS+ BCS Members Loan outstanding (Millions MMK / ) Falam 22 25 1344 319.71 Mil / Hakha 22 28 1289 266.96 Mil / Tedim 34 40 2722 572.32 Mil / Thantlang 34 39 2659 452.85 Mil / Tonzang 17 21 1631 273.52 Mil / Total 129 153 9645 1885.36 Mil / Township Organization Chart MANAGEMENT UNIT EXECUTIVE COMMITTEE MEMBERS + TOWNSHIP MANAGERS 12 EXECUTIVE COMMITTEE AUDITORS SECRETARY/ ACCOUNTANT GENERAL MANAGER OPERATIONS MANAGER TRAINING & MONITORING OFFICER FINANCE MANAGER FALAM MANAGER HAKHA MANAGER TEDIM MANAGER THANTLANG MANAGER ACCOUNTANT 3CS CASHIER ACCOUNTANT 3CS CASHIER AT MANAGER ACCOUNTANT 5CS CASHIER AT MANAGER ACCOUNTANT 5CS CASHIER TONZANG MANAGER ACCOUNTANT 2CS CASHIER Hierarchical structure of Chin MFI 13 CHIN MFI GA Consultative Committee Village level Township Level GA Group of Credit Committee Management Committee Group of Group of Group of Group of Group of Credit Methodology  The application of an interest rate 14 The interest rate (2.5%) is introduced to be covered a) 2.2% fees to township b) 0.3% VCS’s running cost Credit Methodology 15  Loan amount are reviewed and modified every 6-months according to inflation’s influence and capital needed of member’s project  Loan Type a) Group loan b) Individual loan (Micro enterprise Loan) c) Wholesale loan is disbursed to SRG Credit Methodology cont 16  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 a)Monthly interest payment and the loan capital is at the end of the loan duration b)Monthly installments including both of capital and interest Financial products 17 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 Financial products cont 18 MICRO ENTERPRISE LOAN PRODUCT •Aims to support families willing to upgrade their economic activities and start small enterprises •Guaranteed by persons •Loan duration: up to 18 months (20% of capital repaid after one year) •Grace periods- up to months •Loan Amount: 600,000 to 1,000,000 Kyats •Borrowers were trained on Small Business Management, Value Chains & attending some vocational trainings Financial products cont 19 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 months) - Loan amount Ks 1,500,000 to 2,500,000 Micro Enterprise project by a woman client 20 Collected Ginger tubers – drying and grading Small grocery at home 21 Micro Enterprise Loan Borrower Non-financial services- trainings and workshops 22 Workshop on small business management and value chains improvement Women group in learning 23 vocational training on off-farm activities and food processing From village to village 24 Cross visit and exposure visits Challenges and ways forward  Government loans with low interest rate 25  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 ... ACCOUNTANT 5CS CASHIER TONZANG MANAGER ACCOUNTANT 2CS CASHIER Hierarchical structure of Chin MFI 13 CHIN MFI GA Consultative Committee Village level Township Level GA Group of Credit Committee... the management of economic activities and understanding of market economy Key figures of Chin MFI GRET -MFI situation - January, 2016 10 Villages VCS+ BCS Members Loan outstanding (Millions MMK... Loans • LIFT(Legalization Process 2016-2018) Northern Chin State Tonzang Tedim Fa lam Thantlang Hakha (Not for scale) Approach of GRET -Chin MFI  Decentralized management of the Village /Block