Chin MFI presentation

Date - Lieu

Introductory Presentation
GRET-Chin MFI


Background of the Chin-MFI
2

• In 1995, with support of UNDP/UNOPS project, GRET built a
Network of Village Credit Schemes(VCS) in 2 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 5
Townships (Hakha, Falam, Tedim, Thantlang & Tonzang


Back ground cont…
3

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
4

• 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)

5


Approach of GRET-Chin MFI
6

 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 2
collaterals)
• Wholesale loan(Contract with SRG group)


Approach of GRET-Chin MFI cont.
7

 Training of Credit Committee on financial and
management aspects,
 Training of Management Committee on small
business management, leadership & economic
development

Mission / Vision
8

 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
9

1. To give access to savings and credit services
to the families who cannot give guarantee for
bank’s loan
2. To increase livelihood of the villagers through
the development of income generation
3. To implement sustainable financial savings
and credit services aiming at the long- term
development
4. 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


Indicators –January 2016
No. 

ITEM

1 Total Village Credit Scheme
2 Total members

3
4
5

6
7
8
9

10

Group loan members
Micro enterprise loan members
Coverage ratio
Percentage of women involvement
Member projects through loan, Breeding
Cultivation
Trading
Production
Mixed
Total ME loan outstanding
Total group loan outstanding
Total of loans outstanding
% of interest payment
% of capital repayment

Chin-MFI
153
9645
8619
1026
50.53%
60.39%
80.50%
8.48%
9.56%
1.03%
0.43%
515,420,000

1,317,623,000
1,885,368,000
100%
99.66%


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

1 ACCOUNTANT
3CS
1 CASHIER

1 ACCOUNTANT
3CS
1 CASHIER

1 AT MANAGER
1 ACCOUNTANT
5CS
1 CASHIER

1 AT MANAGER
1 ACCOUNTANT
5CS
1 CASHIER

TONZANG
MANAGER
1 ACCOUNTANT
2CS

1 CASHIER


Hierarchical structure of Chin MFI
13

CHIN MFI GA

Consultative Committee

Village level

Township Level GA

Group of 5

Credit Committee

Management Committee

Group of 5

Group of 5

Group of 5

Group of 5

Group of 5

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 2 persons
•Loan duration: up to 18 months (20% of capital
repaid after one year)
•Grace periods- up to 3 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 6 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