Microloan Organization 'Furuz'

Gross Loan Portfolio USD, 2010: 345,895.7

Number of active borrowers 2010: 683

Average loan balance per borrower USD, 2010: 506.4

Deposits USD, 2010: 0.0

Assets USD, 2010: 502,183.4

Number of depositors 2010: 0

Mission:

To contribute to the development of the community by small business development;
motto: Small business development – basis for big changes

Background and Main Challenges:

Main challenge:
1. Development of interest rate while consumer inflation was extremely high in 2007
2. Suitable funding for portfolio growth

Address:

Aini St 27

Kurgantyube

735140

Tajikistan

Phone:

+992-3222-28146

Email:

med-reception [at] mrds [dot] org

Website:

www.mrds.org

Main Funding Sources:

Grants

Loans

Shareholder Capital

Products and Services:

Loans

Training and Consulting

Products:

Individual loans to urban and rural low-income clients; livestock and agricultural loans; consumer loans

Services Provided:

Other

Looking for (Investment Types):

Loans in Local Currency

Other Investment

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1999

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
+ Development goals (ranked by importance)
Increased access to financial services	1
Growth of existing businesses	2
Poverty reduction	3
Employment generation	4
Development of start-up enterprises	5
Housing	6
+ Poverty targets
Low income clients
+ Governance
+ 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
Loans for education
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:	All loan products are equally for the poor and non-poor. But we offer loans without collateral requirements for first loans up to $625 and for repeat loans up to $1040. Average loan size is $780.
+ 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).
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)
+ Basis of staff incentives related to social performance
Portfolio quality
Disbursement amount for loan officers, monitoring of clients for branch supervisors
+ Social responsibility to the environment
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
AMFOT	Network Affiliation
Crystal Clear Software, Ltd.	Vendor
MFC	Network Affiliation

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