Note: One product can have multiple elegibilities. The first chart shows each eligibility as a percentage of all eligibilities.
Shows methodology as a percentage of all quoted methodologies
Shows each service as a percentage of total services offered.
Shows frequency as a percentage of all frequencies.
Shows difference reason as a percentage of all reasonsOther: Centenary Bank:primary loan has a prompt payment rebate (PPR) built into it. The gross interest rate is 30.2% for product 3; and the rate (net of this PPR) is 28.5%New loans attract interest rate of 1.83% per month and a monitoring fee of 2% per month ( 24% per annum), this applies to all borrower with no existing borrowing history with Centenary Bank. The two rates are combined in amortization. In other words a periodic or monthly rate of 3.83% per month is charged on declining balance. For recurrent loan, the interest rate is 1.83% per month, Monitoring fee rate is 0.5% per month. This implies the periodic or monthly rate used for amortization is 2.33%.Habitat for Humanity:Interest rate for the 1st month is charged at 5% for the grace period, but after loan is verified and clients have complied the rate is reduced to 2% for the remaining months.
Shows interest calculation method as a percentage of products
Other types of fees: Loan application fee, Loan appraisal, Acceptance commission, Loan commitment fee, Loan monitoring fee, Administrative fee, etc.
Weighted by active borrowers; Absolute min and max.Coop:Min: 19.1%Max:161.0%NGO:Min: 33.3%Max: 97.1%Privately-owned for profit:Min: 23.1%Max: 157.1%
19.1% and 161.0% is of the same product. Cooperative with only 1 product which can be used for different purposes.Business: 36 productsHousing: 8 productsEmergency: 5 productsConsumer: 7 productsEducation: 12 productsAny purpose: 11 products
Definition:Urban: > 50% of clients are in urban areasRural: > 50% of clients are in rural areasBoth: 50% of clients are in urban areas, 50% of clients are in rural areasUrban: 19 productsRural: 30 productsBoth: 10 products
Explain what each bubble means – color, size etc.
No of products: 29Min: 23.1%Max: 157.1%Weighted Average: 48.6%
No of products: 16Min: 33.3%Max: 97.1%Weighted Average: 52.5%
No of products: 14Min: 19.1%Max: 161.0%Weighted Average: 52.1%
No of products: 36Min: 19.1%Max: 161.0%Weighted Average: 57.7%
No of products: 12Min: 19.1%Max: 161.0%Weighted Average: 53.5%Big green bubbles are Centenary
No of products: 7Min: 27.4%Max: 109.3%Weighted Average: 54.9%Big green bubbles are Centenary
No of products: 8Min: 19.1%Max: 161.0%Weighted Average: 40.6%Big green bubbles are Centenary
Big green bubbles are Centenary
Show actual document
MFTransparency Uganda Data Launch Webinar
Promoting Transparent Pricing in the Microfinance Industry<br />Uganda <br />Data Launch<br />Hosted by MFTransparency and AMFIU<br />Webinar<br />July 27, 2011<br />
enabling APR & EIR Program<br />enabling Africa to Price Responsibly and Educate on Interest Rates<br />Sponsored by the MasterCard Foundation<br /><ul><li> Eight countries in 18 months: Malawi, Uganda, Rwanda, Ghana, South Africa, Tanzania, Zambia, Mozambique</li></li></ul><li>Transparent Pricing Initiative in Uganda<br />Uganda is the second country in the enabling APR & EIR Program to be selected for the Transparent Pricing Initiative.<br />MFTransparency conducted a transparency workshop in Kampala on December 3rd, 2010 to launch the Uganda Initiative.<br />The enabling Africa to Price Responsibly & Educate on Interest Rates Program is a client protection effort of unprecedented scale in Africa, covering Malawi, Uganda, Rwanda, Ghana, Tanzania, Zambia, South Africa and Mozambique.<br />This initiative includes three major components: the collection and publication of pricing data, training on pricing transparency, and the development and dissemination of educational materials. <br />
Transparent Pricing Initiative in Uganda<br />The enabling APR & EIR Program is sponsored by:<br />Thank you to our local partner in Uganda:<br />
Compulsory Savings<br />33 products out of 59 require compulsory savings<br />Of the 33 products that require savings, 2 disclosed the amount of compulsory savings on the repayment schedule<br />For 11 products, borrowers control savings internally<br />
Products with > 50 Active Borrowers Loan Amount < 5,000,000 UGX<br />
Products with > 50 Active BorrowersInstitution Type: Privately-owned for-profit<br />
Products with > 50 Active BorrowersInstitution Type: NGO<br />
Products with > 50 Active BorrowersInstitution Type: Cooperatives<br />
Products with > 50 Active BorrowersPurpose: Business<br />
Products with > 50 Active BorrowersPurpose: Education<br />
Products with > 50 Active BorrowersPurpose: Consumption<br />
Products with > 50 Active BorrowersPurpose: Housing<br />
Products with > 50 Active BorrowersInterest Calculation Method: Flat<br />
Products with > 50 Active BorrowersInterest Calculation Method: Declining Balance<br />
Summary<br />Institution cost structure: Every institution has a unique cost structure which requires a unique pricing strategy.<br />Product cost structure: Different loan products can have significantly different cost structures. It is therefore necessary to look at each loan product individually when assigning loan prices. <br />Limitations of portfolio yield: If we do not analyze costs and prices on a product-by-product basis, our overall portfolio yield may be positive, but some individual products not profitable. This can cause sustainability problems in the future.<br />Remember: Each product is unique and requires a distinct pricing strategy.<br />
Loan Documentation: Case Study<br />Gatsby Micro Finance Ltd – an example of transparent loan documentation<br />
Loan Documentation: Case Study<br />Gatsby Micro Finance Ltdis commended for the disclosure on its loan documentation of:<br />All charges at application (e.g. registration fees, loan commission, application fees)<br />All charges at disbursement ( e.g. registration fees, loan commission)<br />Annual interest rate charged<br />Interest rate method used<br />Grace period and interest charged during grace period<br />Cash flow, differentiating between the principle, interest, penalty, total repayment and total balance<br />
Ways to Get Involved<br />Endorse MFTransparency. More than 800 individuals and organizations have signified their support in principle of MFTransparency's mission by becoming an endorser. Add your name to the list: http://www.mftransparency.org/endorsements/form/<br />Educate about transparent pricing. MFTransparency develops and disseminates educational resources covering a range of topics related to transparent pricing. These materials are all available free of charge through the Resources Library on our website. <br />Participate in country projects. We work with government agencies, networks, associations, donors, investors, academics and other stakeholders in every project country and always welcome new partnerships. MFIs can also actively participate by submitting their data when MFTransparency launches the Transparent Pricing Initiative in their country.<br />
Promoting Transparent Pricing <br />in the Microfinance Industry<br />