BRAC Microfinance
Programme

www.brac.net
Outline
• Update on 2013 performance
• Innovation
– New financial products and services
– Financial inclusion and integrat...
Description of loan products
Average
loan size

Loan term

Repayment
mechanism

Major uses of loans

Dabi

$275

12 months...
www.brac.net
Savings
•
•
•
•
•

Regular Passbook Savings
Monthly Deposit Scheme
Double Deposit Scheme
Fixed Deposit Scheme
Monthly Prof...
Savings portfolio distribution

www.brac.net
Microfinance at a Glance
Bangladesh
Particulars
Loan Portfolio:
Savings:
Members:
Borrowers:
Average Monthly Disbursement:...
Trend: BRAC Microfinance
Bangladesh
2012

2013
(as of Oct)

Particulars

2010

2011

Portfolio (Mil)

$ 534

$ 644

$773

...
www.brac.net
Microfinance at a Glance
BRAC International
Portfolio
(USD, mil)

Members

Borrowers

Avg. Monthly
disbursement
(USD, mil)...
Innovation

www.brac.net
Capacity for
research and development

www.brac.net
New products and services
• Medical loan
• Mobile money-based special savings

www.brac.net
Integration and inclusion
• Partnership with the Center for
Rehabilitation of the Paralyzed
• Skills training for village ...
www.brac.net
Research and information
• Understanding clients’ behavior and
needs
– Financial diaries
– MIS-based analyses to be follow...
Mapping BRAC’s presence at the grassroots

Dinajpur Chehelgaji community resources map
www.brac.net
Plans for 2014 in Bangladesh
• Micro-pensions
• Financial education and client protection
• BRAC Innovation Fund for Digit...
Thank You

www.brac.net
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Microfinance Presentation 2013

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Innovative, client focused and sustainable, the BRAC microfinance programme is a critical component of our holistic approach to support livelihoods. Over the course of the last four decades, we have grown to become one of the world’s largest providers of financial services to the poor, providing tools which millions can use for the betterment of their lives.

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  • Regular passbook (“own savings”)—compulsory; 5% at the time of dispursement, minimum of 200 per month; 6%, technically could take it out anytime
    Special savings team
    Monthly deposit scheme—working towards a target
    Double deposit—principle doubles; put it in once, get double after 7
    Fixed deposit—fixed interest rate; one year
    Monthly profit scheme—getting interest every month
  • Add the table here
  • Political situation usually leads to higher PAR because harder to collect installments; write offs take effect in june and december—when we do the write off in december, it should be under 5.9%.
    Ideal PAR
    5.6 for dabi
    4.6 for progoti
  • We have acquired a finance company in Sri Lanka and our portfolio from the NGO is being transferred there; becoming a regulated financial institution
    Now have 4 staff on the ground in Myanmar, hoping to start disbursements in February 2014
  • 1/3 of MF borrowers default because of medical reasons; borrow $$ from other sources at an extorbitant rate…..better if they take a loan from us
    Tk 3-50k
    Tell your PO/BM, I’m sick, need to go to the doctor; referral slip to BRAC hospital (Rangpur). Based on MD’s assessment, we make the payout.
    End of Oct
    36 loans
    Will expand to more emergency-care loans.
    Will also expand to ~50 BRAC clinics; panel doctors
  • Microfinance Presentation 2013

    1. 1. BRAC Microfinance Programme www.brac.net
    2. 2. Outline • Update on 2013 performance • Innovation – New financial products and services – Financial inclusion and integration – Research and information systems • Upcoming initiatives – “One BRAC” – Innovation Fund for Digital Financial Services www.brac.net
    3. 3. Description of loan products Average loan size Loan term Repayment mechanism Major uses of loans Dabi $275 12 months Equal weekly/monthly installments Small operations in poultry, livestock, vegetable cultivation, handicrafts and rural trade Progoti $2,200 12 or 18 months Equal monthly installments Working capital for shops, agricultural businesses and small manufacturing Migration loan $2,300 12, 18, or 24 months First month no installment, Increasingly over time Financing outgoing migrants’ costs, migrants’ families well being www.brac.net
    4. 4. www.brac.net
    5. 5. Savings • • • • • Regular Passbook Savings Monthly Deposit Scheme Double Deposit Scheme Fixed Deposit Scheme Monthly Profit Scheme www.brac.net
    6. 6. Savings portfolio distribution www.brac.net
    7. 7. Microfinance at a Glance Bangladesh Particulars Loan Portfolio: Savings: Members: Borrowers: Average Monthly Disbursement: Staff: As of October 2013 $ 894 million $ 349 million 5.72 million 4.38 million $127 million 17,000 www.brac.net
    8. 8. Trend: BRAC Microfinance Bangladesh 2012 2013 (as of Oct) Particulars 2010 2011 Portfolio (Mil) $ 534 $ 644 $773 $894 Savings (Mill) $ 243 $ 272 $ 320 $349 Disbursement (Mil) $ 899 $ 1,052 $1,250 $1,270 PAR (>30 days) 10.3% 7.9% Operating self sufficiency 118.6% 110.8% 5.9% 128.3% 6.5% 135.6% www.brac.net
    9. 9. www.brac.net
    10. 10. Microfinance at a Glance BRAC International Portfolio (USD, mil) Members Borrowers Avg. Monthly disbursement (USD, mil) Branch Offices Pakistan 8.1 65,000 58,000 1.6 78 Sri Lanka 9.2 81,000 68,000 1.3 87 Tanzania 20 131,000 101,000 3.8 112 Uganda 22 161,000 127,000 4.5 130 Sierra Leone 2.8 26,000 20,000 0.48 29 Liberia 2.3 25,000 13,000 0.38 25 www.brac.net
    11. 11. Innovation www.brac.net
    12. 12. Capacity for research and development www.brac.net
    13. 13. New products and services • Medical loan • Mobile money-based special savings www.brac.net
    14. 14. Integration and inclusion • Partnership with the Center for Rehabilitation of the Paralyzed • Skills training for village organization members’ children • Youth savings product for members of kishori clubs (Adolescent Development Programme) www.brac.net
    15. 15. www.brac.net
    16. 16. Research and information • Understanding clients’ behavior and needs – Financial diaries – MIS-based analyses to be followed by field studies (with Cambridge University) • Improving data systems through increased GIS information and cross-program sharing initiatives www.brac.net
    17. 17. Mapping BRAC’s presence at the grassroots Dinajpur Chehelgaji community resources map www.brac.net
    18. 18. Plans for 2014 in Bangladesh • Micro-pensions • Financial education and client protection • BRAC Innovation Fund for Digital Financial Services www.brac.net
    19. 19. Thank You www.brac.net

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