Where We Work : Pakistan : Microfinance

Launched initially on a small scale in Punjab and the North West Frontier Province (NWFP) in August 2007, BRAC Pakistan’s microfinance programme is now operating with 86 branch offices, covering 14 districts in 4 provinces.

Our microfinance programme has been designed to serve a large number of poor people – mostly women – with reliable access to cost effective financial services. They also receive additional support  – such as specialist training and input supplies - for their varied small businesses.

Every week in Pakistan, 8,800 women attend their local BRAC microfinance meetings. They come to repay their weekly loan instalments, apply for new loans, and buy health products from their community health promoter.

Main features:

• Village Organisations
• Micro loans

Village Organisations

The village organisation is the basis for BRAC to provide microfinance and other programs to the community. A village organisation is a group of 20-30 women that meets weekly to discuss credit decisions and make loan repayments.  New borrower groups meet four times before any loan disbursement takes place.

Micro loans

Our main microfinance product is the micro loan. We offer this exclusively to women on low incomes who are not served by other microfinance institutions.

Borrowers typically operate businesses that provide products or services to their local communities. They range in age from 20-50 years and have little or no education.

We go directly to the poor women we are targeting and meet them in their villages, homes and places of work.

Features of Micro loans:

• Exclusively for women
• Loan repayments in small weekly installments
• No physical collateral needed
• Loan range: USD 150-400
• Competitive interest rates
• Loan forgiveness and grants for dependants given upon borrower’s death
• Services delivered to member’s village
• Available in rural and urban areas