Micro Finance Programme
Micro Finance (MF) Programme in Afghanistan has started to work with a view to create a self-sustaining and reliable financial service programme for the poor, especially women. MF Programme launched with a goal to extend financial and non-financial services to support poverty alleviation in the under developed areas of Afghanistan . BRAC's Microfinance Programme provides micro loan service and other services to the poor women so that they will be able to break the cycle of poverty. To save them from different forms of exploitations, BRAC extends credit facility to the poor for income generation activities such as: cloth stitching, fruits and vegetable vending, carpet weaving, agriculture, small grocery and enterprise, livestock, etc., so that the poor can easily establish their own venture and able to improve their financial barriers. Under this programme all Village Organisation (VO) members will receive loans. Borrowers pay the loan installments at the weekly VO meeting. Through this loan service, BRAC Afghanistan extends loan facility to those who have little or no source of income.
Characteristics of the Programme
- Loan range: 5,000 Afs - 100,000 Afs (US $ 100 - $ 2,000)
- Repayment: Equal weekly installments
- Loan Duration: 1 year
BRAC Afghanistan microfinance programme has set the following criteria to consider a member for the programme.
- Those poor households which have less than 20 biswa land including homestead
- Day laborers who sell manual labor (on and off farm) for earning livelihoods.
- A member is considered within an age limit between 18 - 60 years.
- Small businessmen and traders who earn their livelihood on a daily basis through these businesses.
- Only one member per household is considered.
- Widows are encouraged to join as a member.
Village Organisation (VO)
After finding out the target poor people through the area survey, a village organization is conduct by the village people. There is a Village Organisation meeting in every week held in a particular pre-decided place. All the members attend in the meeting and discuss the possibility of developing of their social and economic condition in their life In each village organization consists 25 to 30 members.
Loan Facility to VO members
BRAC's Microfinance Programme provides micro loan service and other services to the poor women so that they will be able to break the cycle of poverty. To save them from different forms of exploitations, BRAC extends credit facility to the poor for income generation activities. Under this programme all VO members will receive loans. Credit needs will be determined in weekly meetings with the help of small group. Borrowers will pay the loan installments
Micro Finance: At a glance as of August, 2011
| Province Covered |
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| Population Covered in million |
1.32 |
| District Covered |
|
| No. of Area Offices |
|
| No. of Branch Offices |
|
| Members (MF+ALDCSP) |
|
| Borrowers (MF+ALDCSP) |
|
| Cumulative Disbursement |
|
| Loan Outstanding |
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