Orix Leasing - Microfinance Division

Gross Loan Portfolio USD, 2010: 2.3 million

Number of active borrowers 2010: 18,125

Average loan balance per borrower USD, 2010: 128.6

Deposits USD, 2010: —

Assets USD, 2010: —

Number of depositors 2010: —

Mission:

Orix contributes to society through participation in poverty alleviation programmes, provision of financial assistance to grass root level and assistance to charitable institutions

Background and Main Challenges:

Integration of micro leasing and microfinance, MIS, and exposure to financial institutions where microfinance as a separate product line.

Address:

State Life Building, Davis Road

Lahore

Punjab

Pakistan

Phone:

0092 42 111 242 424

Fax:

0092 42 637 5767

Email:

aseya [at] lhr [dot] orixpakistan [dot] com

Website:

www.orixpakistan.com

Main Funding Sources:

Shareholder Capital

Products and Services:

Loans

Leasing

Services Provided:

Full-scale Financial Services

Looking for (Investment Types):

Loans in Local Currency

Donations

Capacity Building Grants

% Operations Comprised by MF:

0 - 10

Date established:

Jan 1 1992

FYE:

30-Jun

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Increased access to financial services	1
Poverty reduction	2
Employment generation	3
Growth of existing businesses	4
Development of start-up enterprises	5
+ Poverty targets
Low income clients
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
SME loans
+ Savings products offered
+ Compulsory insurance products required
Compulsory credit life insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
Microleasing
+ 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.
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
Flat 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
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
+ Poverty measurement tools in use
Own proxy poverty index