Aga Khan Agency for Microfinance

Services Offered

Micro-Loans
Microfinance in Pakistan A successful project entitled Women Access to Capital and Technology, the Bank is ensured that women benefit as maximally as possible through their entrepreneurial endeavours.The Bank offers a range of targeted loan products catering to the diverse financial needs of its clientele in both mountainous and flat rural areas, as well as in peri-urban and urban areas. These loans aim to enable the poor to effectively capitalise on economic opportunities and to facilitate capital formation through entrepreneurial activities. Market-driven and cash flow-based working capital facility is provided to urban and rural poor to support existing micro enterprises, agricultural and livestock activities, as well as meeting short term health, education and emergency needs. The average outstanding loan size is $ 155. Loans are disbursed in solidarity groups against social collateral. The focus in all these services is to serve women entrepreneurs.

Savings and Deposits
A wide range of saving facilities including checking accounts, savings accounts and term deposits are offered for all income groups. Individuals may establish accounts with as little as PKR 5 (US$ 0.08), pay no transactional charges and need not retain a minimum balance. Competitive rates of return are offered on all saving schemes, with extra benefits for small savers (those saving less than PKR 25,000 or US$ 315). Over 85 percent of FMFB-P's depositors are micro-savers and have a deposit holding of less than US$ 70. To facilitate poor clients to save for purposes such as education and health, a contractual saving product (similar to the pattern of ROSCAs) linked with insurance is offered, wherein clients save small amounts on monthly basis for 12, 24, 36 and 48 months.

Fund Transfers
The Bank offers same day fund transfer facilities within the country. These services are enabling fund transfers and remittances equally to remote mountainous regions of northern Pakistan and Chitral as to other parts of the country.

Microinsurance
All borrowers benefit from life and credit insurance at a nominal premium of PKR 100 (less than US$ 1.25) per annum. In the event of death or permanent disability of the borrower, the insurance policy covers all outstanding dues of the borrower. In addition, the borrower’s family is assisted with PKR 10,000 (US$ 125) for emergency costs.

Business Development Services
Based on its vision, FMFB has institutionalized Business Development Services (BDS) as an integral part of its operations. The BDS activities focus on developing entrepreneurial capacities and providing opportunities for capital formation to the chronic poor segment, which in turn will make them bankable. Undertaking an intra-enterprise approach, FMFB currently offers market-driven intensive business start-up and management trainings coupled with mentoring services to facilitate business set-up and growth.