Aqrarkredit | MFIs in Azerbaijan

Mission:

Credit for small and medium-scale enterprises in rural locations

Background and Main Challenges:

Non-bank credit organization with the head office in Baku, 12 branches and 5 representations in the regions.

Address:

Ul. Gadirli 125

Baku

AZ1006

Azerbaijan

Phone:

(+994 12) 498-27-30

Fax:

(+994 12) 498-15-17

Email:

asb [at] baku-az [dot] net

Website:

www.aqrarkredit.az

Main Funding Sources:

Loans

Shareholder Capital

Products and Services:

Loans

Leasing

Training and Consulting

Products:

Credit, leasing, consulting, cash-settlement operations

Services Provided:

Full-scale Financial Services

Looking for (Investment Types):

Loans in Local Currency

Donations

Other Investment

Equity investments

% Operations Comprised by MF:

61 - 70

Date established:

Feb 1 2001

FYE:

31-Dec

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Clients living in urban areas	2
Women	3
Groups and credit unions	4
Adolescents and youth (below 18)	5
+ Development goals (ranked by importance)
Increased access to financial services	1
Poverty reduction	2
Growth of existing businesses	3
Development of start-up enterprises	4
Employment generation	5
+ Poverty targets
Very poor clients
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
Has a formal board committee that monitors social performance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
Voluntary credit life insurance
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
Business development services
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
AMFA	Network Affiliation

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Social Performance Profile

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