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Nasra and Shakina are working together to create a beautiful bridal dress. They have been running a bridal boutique businees in Alamdisura, Multan with the support of loans from BRAC.
Programme Description It is estimated that more than half of Pakistan’s microfinance market remains untapped. A large number of the poor have little to no experience in dealing with banks and other financial institutions. Therefore there is a great need for BRAC’s microfinance multiplied approach to poverty alleviation in Pakistan. Our microfinance programme aims to strengthen the income base of poor women by providing easy access to credit which in turn enables them to start and expand income generating enterprises. Our policy in Pakistan is to encourage investments by poor women in productive activities. The main focus is on women borrowers because they play a pivotal role within both family and community financial networks. Investing in these women results in significant social and economic benefits for their entire families and also adds to their independence and empowerment.
Microloans
At the core of the programme are microloans, which are exclusively for women participating in the Village organisations (VOs). We target poor but economically active women who are within the bottom 50% of the national poverty line. Our credit officers are responsible for identifying clients and forming VO groups from among
the women in their target area. Some guidelines for membership include: • Only women aged between 18-55 years • Special emphasis on female-headed households and widows • Must not be a member of any other microfinance organisation • VO size: 15-30 members (3-6 in the sub-groups) We have created a standard microloan product based on women’s financial capacity, specifically designed to assist poor women in undertaking income and employment generating activities.
Key Features of Microloans: • • • • •
Loan Range: USD 100 - 600 Loan Security Deposit: 10% of the sanctioned amount (refundable after repayment) Repayment Mechanism: Payable weekly in 24 or 48 equal instalments No collateral is required After four group meetings the loan disbursement starts taking place