Beselidhja/Zavet Microfinance

Gross Loan Portfolio USD, 2010: 7.4 million

Number of active borrowers 2010: 3,555

Average loan balance per borrower USD, 2010: 2,067.9

Deposits USD, 2010: 0.0

Assets USD, 2010: 7.9 million

Number of depositors 2010: 0

Mission:

The mission of BZMF is to support transfortmation in the lives of the poor and small-medium enterprises by providing innovative financial services and to contribute to the to the economic development of Kosovo

Background and Main Challenges:

BZMF Started as a program of World Relief since 1999, an American-based non-government organization (NGO) established in 1944.The program was established following a housing reconstruction program run by World Relief’s disaster response team.With a combination of very lean operations and a ... Read more

Address:

Street UCK, No. 18

Pristina

Kosovo

Phone:

+381(0)38 225 023

Fax:

+381(0)38 247 951

Email:

info [at] bzmf [dot] org

Website:

www.bzmf.org

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

Training and Consulting

Services Provided:

Business Development Services

Looking for (Investment Types):

Loans in Local Currency

Loans in USD

Donations

Guarantees

Capacity Building Grants

Equity investments

Loans in EUR

% Operations Comprised by MF:

91 - 100

Date established:

Jul 2 2000

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
+ Development goals (ranked by importance)
+ Poverty targets
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
Loans for agriculture
Housing loans
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ 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.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
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).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
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
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
AMIK	Network Affiliation
Consorzio Etimos	Funding
Crystal Clear Software, Ltd.	Vendor
Oikocredit	Funding
World Relief	Network Affiliation

MFI Report