Farz Islamic Microfinance Model

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Farz Islamic Microfinance Model is The First Shariah Compliant

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Farz Islamic Microfinance Model

  1. 1. First Islamic Microfinance in Pakistan 1
  2. 2. 2
  3. 3. “To bring social changethrough poverty alleviation by improving productivity and capacity of clients and staff ” First Islamic Microfinance in Pakistan 3
  4. 4. Empowering the poor through innovative products and diverse business opportunities, by integrating social performance focused microfinance withcollaborative community health and education partnerships. 4
  5. 5. First Islamic Microfinance in Pakistan 5
  6. 6. Intend to do Our Target HouseholdRequest for Membership through Murabaha Offer for Membership through Murabaha Household Business Membership done via Female Step-1 Takaful Step-2 Murabaha 6
  7. 7. Meet Business Expanses Household Reinvestment in Profit generated Business Business from Business Member Meet Household Business Expanses Installment of Farz Committee BusinessStep-3 Education 7
  8. 8. Household Profit generated Installment of Business from BusinessMember Farz Committee Business installment to FF Member gives FF Provides facility to client (See Farz Committee) Farz Committee Pool 8
  9. 9. From every 3rd to 11th,member gets the Share PKR:200 total collection2,200 In Committee through a monthly lucky Pool Draw . (1st and 2nd collection go to FF & group organizer)Farz Foundationas 1 Member Committee Pool and Committee Group total Collection= PKR: Member 2,20010 Members ofCommunity fromOne Cluster 9
  10. 10. Committee Pool and Committee Group Total Collection= PKR: Member 2,200 To meet PKR: 2,200 immediate Needs PKR: 2,200 +220 in one year Members Members get PKR: do 2,440 partnership Option Build asset after one with FF Year or Monthly Reinvest in Core PKR:20 Business Investment Pool of Farz Foundation(FF & Community are partners in MURABAHABusiness) FF generates other source of Income for their Client 10
  11. 11. Health Care Awareness HouseholdFF Provides health care awareness to clients 11
  12. 12. Future Protection ProgramFF gives awarness to clients about their Household children’s education through “Children Education Awareness Program” 12
  13. 13. First Islamic Microfinance in Pakistan 13
  14. 14. Financial ServiceHealth Business & Environmental educationTARGET MARKET First Islamic Microfinance in Pakistan 14
  15. 15. Upper MiddleLower First Islamic Microfinance in Pakistan 15
  16. 16. • Large Murabaha + Takaful + Committee (participatoryNon-Poor saving) +Health Care Awareness +Business & Environmental Education • Medium Murabaha +Takaful + CommitteePoor participatory saving) +Health Care Awareness +Business & Environmental EducationModerately • Small Murabaha + Takaful + Committee (participatory saving) +Health Care Awareness +Business &Poor Environmental EducationPoorest • Zakah or charity in kind or in shape of income generating tools) +Health Care Awarenessof the poor +Business & Environmental Education First Islamic Microfinance in Pakistan 16
  17. 17. Product Trade SizeMurabaha (Small) PKR: 5,000 to 30,000Murabaha (Medium) PKR: 31,000 to 80,000Murabaha (Large) PKR: 81,000 to 150,000 First Islamic Microfinance in Pakistan 17
  18. 18. Product TargetMurabaha (Small) 1,080 ClientsMurabaha (Medium) 180 ClientMurabaha (Large) 0 First Islamic Microfinance in Pakistan 18
  19. 19. 1200 1080 1079 10171000 936 834 800 734 707 Murabaha Small 600 553 556 536 Murabaha Medium 499 Murabaha Large 468 473 384 396 400 340 319 251 231 207 194 180 200 157 148 107 73 58 49 34 0 0 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year 19
  20. 20.  To allocate the Area for Social Center (Branch) To allocate the Potential working areas for social center Product need assessment.  Potential businesses.  Cash flow of different businesses.  Size of micro trade. First Islamic Microfinance in Pakistan 20
  21. 21.  Add for staff hiring in local News paper. Collection of CVs as per given date. Short listing of CVs and finalize prospective Candidates for interview. Sending calling letters to all selected interviewees. Conduct 1st interview First Islamic Microfinance in Pakistan 21
  22. 22.  To deliver the orientation of FARZ FOUNDATION to final candidates for jobs. To deliver three days Step-in-Training to all Selected staff.(In house)  Islamic banking & finance . Conventional microfinance  Farz Methodology  Basic Selection criteria of FARZ FOUNDATION  Area survey  Effective Mobilization skills  Clients appraisal training  Cluster formation steps  Conduct of community meetings  Customer relationship management  Social performance management  Delinquency management  Monitoring 22
  23. 23.  Three days on the job training to the staff.  Basic Selection criteria of FARZ FOUNDATION  Area survey  Effective Mobilization skills  Clients appraisal training  Cluster formation steps  Conduct of community meetings  Customer relationship management  Social performance management  Monitoring  Islamic banking & finance . Conventional microfinance  Farz Methodology Interview and selection for one month internship Selection for 11 month on a contract. After 11 month, contract extension / permanent employee. 23
  24. 24.  Social Center Opening Ceremony Mobilization First Islamic Microfinance in Pakistan 24
  25. 25. Social Manager Accountant SO SO SO SO Small Small Small MediumMurabaha Murabaha Murabaha Murabaha Office Boy First Islamic Microfinance in Pakistan 25
  26. 26. Cluster ManagerGroup Group GroupLeader Leader LeaderMember Member MemberMember Member MemberMember Member Member Member Member Member First Islamic Microfinance in Pakistan 26
  27. 27. • MOBILIZATIONStep 1 • COMMUNITY MEETING CONDUCTED BY SOCIAL OFFICER (SO)Step 2 • TO FINALIZE THE CLUSTER MANAGER AND GROUP LEADERSStep 3 • HOME SCREENINGStep 4 • BUSINESS SCREENINGStep 5 • FINAL FORMATION MEETINGStep 6 • SALE AGREEMENT AND DELIVERY OF ASSET & STOCKStep 7 First Islamic Microfinance in Pakistan 27
  28. 28.  Identification of potential clients within above mention target market. Identification of the potential businesses. First Islamic Microfinance in Pakistan 28
  29. 29. First Islamic Microfinance in Pakistan 29
  30. 30.  What is the eligibility criteria for taking our product Systems and procedures for taking our product. Your and our responsibilities for managing social performance at cluster level. Introduction of program. First Islamic Microfinance in Pakistan 30
  31. 31.  Verification of Client’s according to the member selection Criteria Information Collection (Home Related) First Islamic Microfinance in Pakistan 31
  32. 32. First Islamic Microfinance in Pakistan 32
  33. 33. First Islamic Microfinance in Pakistan 33
  34. 34. First Islamic Microfinance in Pakistan 34
  35. 35. First Islamic Microfinance in Pakistan 35
  36. 36.  Verification of Client’s Business according to the member selection Criteria Financial Analysis Repayment Capacity Business Information Collection First Islamic Microfinance in Pakistan 36
  37. 37. First Islamic Microfinance in Pakistan 37
  38. 38. First Islamic Microfinance in Pakistan 38
  39. 39. First Islamic Microfinance in Pakistan 39
  40. 40. First Islamic Microfinance in Pakistan 40
  41. 41.  Briefing to the Clients about Sale, purchase, price, cost, profit, sale agreement, System, Procedures and repayments Schedule First Islamic Microfinance in Pakistan 41
  42. 42. First Islamic Microfinance in Pakistan 42
  43. 43. First Islamic Microfinance in Pakistan 43
  44. 44.  Selection of standardize Venders/Whole Sellers To Purchasing of Asset / Stock as per demand of Client’s Business First Islamic Microfinance in Pakistan 44
  45. 45. First Islamic Microfinance in Pakistan 45
  46. 46.  Transparency of Sale Agreement Transfer of Ownership First Islamic Microfinance in Pakistan 46
  47. 47. 47
  48. 48. First Islamic Microfinance in Pakistan 48
  49. 49. First Islamic Microfinance in Pakistan 49
  50. 50.  Daily, weekly, monthly, quarterly and six monthly reports system. Field visits of bottom to top Management. Fortnightly Meetings with 100% Clients. Social Performance Management. First Islamic Microfinance in Pakistan 50
  51. 51. First Islamic Microfinance in Pakistan 51
  52. 52. First Islamic Microfinance in Pakistan 52
  53. 53. First Islamic Microfinance in Pakistan 53
  54. 54. Heads FeaturesCommittee Size Min= PKR:100 and Max=unlimitedPeriod of Committee Cycle 11 MonthParticipants of Committee in Each Group 10 Members + 1 Farz Foundation=11Number of Committee Groups under Min=1 and Max=3One ClusterFrequency of Committee Installment FortnightlyFrequency of Committee Draw Every Month(lucky draw) First Islamic Microfinance in Pakistan 54
  55. 55. First Islamic Microfinance in Pakistan 55
  56. 56. 1st Month of Committee 1st Total Collection of Share PKR:200 Committee Pool In Committee goes to Farz Pool Foundation Farz Foundation as a Member Committee Pool and Farz Foundation as Total Collection= PKR: Committee Manager 2,200 10 Members of (FF) Community from One Cluster First Islamic Microfinance in Pakistan 56
  57. 57. 2nd Month of Committee 2nd month Total Share PKR:200 Collection of Committee In Committee Pool goes to Committee Pool Group Organizer Farz Foundation as 1 Member Committee Pool and Committee Group Total Collection= PKR: Organizer 2,200 10 Members of Community from PKR: 2,200 +220 in one year One Cluster Members Members PKR: 2,200 get PKR: become 2,440 partner of after one FF Year or Monthly PKR:20 Investment Pool of Farz Foundation (FF & Community are partner in MURABAHA Business) First Islamic Microfinance in Pakistan 57
  58. 58. 3rd to 11th Month of Committee 3rd to 11th, every month Total Collection of Committee Pool goes to Share PKR:200 Committee Members In Committee through Lucky Draw Pool Farz Foundation as 1 Member Committee Pool and Committee Group Total Collection= PKR: Member 2,200 10 Members of Community from One Cluster PKR: 2,200 +220 in one year PKR: 2,200 Members Members get PKR: do 2,440 partnershi after one p with FF Year or Monthly PKR:20 Investment Pool of Farz Foundation (FF & Community are partner in MURABAHA Business) First Islamic Microfinance in Pakistan 58
  59. 59. First Islamic Microfinance in Pakistan 59
  60. 60. First Islamic Microfinance in Pakistan 60
  61. 61.  Organizing Eye care Camps Health Awareness Program First Islamic Microfinance in Pakistan 61
  62. 62. First Islamic Microfinance in Pakistan 62
  63. 63. First Islamic Microfinance in Pakistan 63
  64. 64.  Educational Support to Community children First Islamic Microfinance in Pakistan 64
  65. 65. First Islamic Microfinance in Pakistan 65
  66. 66. 346350300250 235 Trained for Murabaha Medium Trained for Murabaha Larg200 177 172 160 150 151150 127 109 102100 80 74 62 58 5050 34 23 16 0 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 66
  67. 67. First Islamic Microfinance in Pakistan 67

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