EKI | MFIs in Bosnia and Herzegovina

Data provided through EKI

Gross Loan Portfolio USD, 2011: 61.4 million

Number of active borrowers 2011: 35,342

Average loan balance per borrower USD, 2011: 1,736.4

Deposits USD, 2011: 0.0

Assets USD, 2011: 66.8 million

Number of depositors 2011: 0

Mission:

The mission of EKI is to reduce economic causes of poverty in B&H. EKI is not for profit micro credit organisation who listens to its clients, makes flexible decisions and takes acceptable risks. We are a decentralised organisation of motivated, committed, professional staff and Board. We ... Read more

Background and Main Challenges:

Established as the WVI program 1996 to serve low income and vulnerable population. March 30, 2001 EKI registered as local micro credit organization and on May 1, 2008 changed its legal status into the Microcredit Foundation EKI. Challenges for EKI is to ramain good positioned MCO on the local ... Read more

Address:

Dzemala Bijedica bb

Sarajevo

71000

Bosnia and Herzegovina

Phone:

387 33 702 820

Fax:

387 33 702 824

Email:

ekias [at] bih [dot] net [dot] ba

Website:

www.eki.ba

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

Products:

- Microloans for registred and non-registred businesses
- SME loans
- Agro loans
- Housing loans
- Short- term loans
- Loans for households

Looking for (Investment Types):

Loans in Local Currency

Donations

Capacity Building Grants

Equity investments

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1996

FYE:

31-Dec

Current Legal Status:

NGO

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Clients living in urban areas	2
Other target market:	3
Women	4
Int msg targetmothertext c	Unregistered Businesses
+ Development goals (ranked by importance)
Poverty reduction	1
Employment generation	2
Growth of existing businesses	3
Development of start-up enterprises	4
Housing	5
Gender equality and women's empowerment	6
Increased access to financial services	7
+ Poverty targets
Very poor clients	1
Poor clients	1
Low income clients	1
+ 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	1
Microcredit for household needs/consumption	1
Loans for agriculture	1
Housing loans	1
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
Voluntary credit life insurance	1
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Financial literacy education	1
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting 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)
Benefits (medical insurance, pension contribution)
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
Outreach to remote/rural communities
Outreach to women
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
This institution identifies enterprises with environmental risk

+ Poverty measurement tools in use
Internally created set of poverty indicators

Partnerships

Current
Name	Relationship
AECID	Funding
AMFI - BiH	Network Affiliation
EFSE	Funding
FBA	Regulation
MFC	Network Affiliation
MicroSave	Partner
MicroVest I	Funding
Oikocredit	Funding
Planet Rating	Rating
Vision Fund	Network Affiliation
World Vision	Network Affiliation