Khushhali Bank | MFIs in Pakistan

Gross Loan Portfolio USD, 2010: 43.5 million

Number of active borrowers 2010: 325,523

Average loan balance per borrower USD, 2010: 133.6

Deposits USD, 2010: 11.7 million

Assets USD, 2010: 84.6 million

Number of depositors 2010: 205,962

Mission:

Our mission is to strengthen the economic base of low income populace by improving their accessibilty to financial services through the establishment of sustainable, scalable financial services platform with retail delivery capacity.

Background and Main Challenges:

Khushhalibank is the largest and the lead licensed Micorfinance Institution in Pakistan, mandated to catalyze the envoirnment for the growth of the sector besides underatking its core responsibilty of retailing microfinance services across Pakistan. Our main challange is to develop a ... Read more

Address:

94 West Fourth Floor Jinnah Avenue, Blue Area PO Box 3111

Islamabad

Pakistan

Phone:

+92 51 111 092 092

Fax:

+92 51 920 6080

Email:

info [at] kb [dot] com [dot] pk

Website:

www.khushhalibank.com.pk

Main Funding Sources:

Grants

Loans

Shareholder Capital

Products and Services:

Loans

Training and Consulting

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 2000

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	1
Women	1
+ Development goals (ranked by importance)
Employment generation	1
Increased access to financial services	2
Poverty reduction	3
Growth of existing businesses	4
Gender equality and women's empowerment	5
+ Poverty targets
Poor clients
Low income clients
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Loans for agriculture
+ Savings products offered
Checking accounts
Voluntary savings accounts
Fixed term deposits
Special purpose savings accounts
+ Compulsory insurance products required
Compulsory credit life insurance

+ Voluntary insurance products offered
+ Other financial products and services offered
Savings facilitation services
Remittances services
+ 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 micro-lending products are desinged to meet the needs of low income/poor people.
+ 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
Portfolio quality
+ Social responsibility to the environment
This institution identifies enterprises with environmental risk

+ Poverty measurement tools in use

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