Ecumenical Church Loan Fund Universal Credit Organization

Gross Loan Portfolio USD, 2010: 3.4 million

Number of active borrowers 2010: 1,402

Average loan balance per borrower USD, 2010: 2,431.0

Deposits USD, 2010: 0.0

Assets USD, 2010: 3.5 million

Number of depositors 2010: 0

Mission:

Ecumenical Church Loan Fund
Universal Credit Organization is a Christian development organisation, aimed at promoting human development through extending fair credits and credits. Company intends to promote spiritual, social, and economic uplifting of the people by recruiting a viable ... Read more

Background and Main Challenges:

"The principal objectives of Company are to provide fair credit and credits (hereafter-credit) to: Activities that will enable poor and excluded groups to improve their socio-economic conditions and strengthen self-reliance; Institutions that will contribute to the creation of employment for ... Read more

Address:

Baghramyan str. 2

Etchmiadzin, 1101

Armenia

Phone:

374 231 4 05 18

Fax:

374 231 4 01 71

Website:

www.eclof-uco.am

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

Products:

Loans and Credits

Looking for (Investment Types):

Loans in Local Currency

Loans in USD

Loans in EUR

% Operations Comprised by MF:

91 - 100

Date established:

Oct 17 2006

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
Women	2
Youth clients over 18 and below 30	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Increased access to financial services	1
Growth of existing businesses	1
Poverty reduction	1
Gender equality and women's empowerment	2
Youth opportunities	2
Employment generation	2
Housing	3
+ Poverty targets
Low income clients
+ 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 for household needs/consumption
SME loans
Loans for agriculture
Housing loans
Loans to NGOs for community development, loans to the church and church-related organizations
+ Savings products offered
+ Compulsory insurance products required
For pledged vehicles
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development
Business development services
+ Education services offered
Organization of seminars for clients on credit products offered by the company and how to use them
+ 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
Transparency on salary (a clear salary scale based upon market salaries)
Protection at work (safety, anti-harassment)
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
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use