Microfinance Program of SRSP

SRSP

SRSP Microfinance Program: SRSP from its experience and understanding of the target group understands that poverty reduction can only be possible if it is addressed with a multidimensional poverty reduction strategy. This may be in the form of imparting skill enhancement training with low cost training programs, providing financial support in the form of loans, improving physical infrastructure by not only constructing farm to market roads but also fulfilling the dire need of rural water supply and proper sanitation. Moreover, providing assistance in developing social infrastructure is also necessary to address the issue of poverty, especially in rural areas. This may be by creating awareness on rural health, education, and family planning through social mobilization. SRSP thus employs an approach where Men Community Organizations/Women Community Organizations are identified as vehicles for building the self help capacity and potential of the communities. These organizations are also the vehicles to identify and undertake a variety of diverse developmental projects related to, for instances, microfinance, infrastructure development, natural resource management, enterprise promotion and social development. SRSP has its microfinance operations spread currently in 60 union councils of the 8 districts of NWFP.  Rural populations in Northwest Frontier Province (NWFP) are mainly engaged in small-scale agriculture or agriculture-related activities and are generally poorer than their urban counterparts.

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Characteristics of Rural Financial Markets in NWFP

Characterstics of Rural Financial Markets of NWFP

Low population density, small average loans, and low household savings, which increases the transaction cots per monetary unit of financial intermediation. Lack of infrastructure, limited social services like education and health, and low integration with complementary markets results in highly fragmented financial markets that involve high costs of overcoming information barriers and limited risk diversification opportunities. Seasonality of agricultural production and sensitivity to natural disasters heighten the probability of covariant risks (in prices and yields) affecting client incomes and add to the cost of rural financial intermediation.

Emergency Loan: (ceiling Rs. 10,000/-)

EL is designed to save a member from the sale of a productive asset in case of a sudden emergency or income shock. Since the asset base of our target group is very thin (being poor and poorest of the poor) thus women members also access the facility for purchase of household assets against the weekly savings that they make. 

Business Loan: (ceiling Rs. 20,000/-)

BL enable the members to respond to an economic opportunity. Agriculture Loan: (ceiling Rs. 10,000/-) AL aims at addressing the financing needs of small farmers for purchase of agri-inputs. Since the loan is repayable in lump-sum thus women also use the proceeds for livestock trading. 

Talimi Loan: (ceiling Rs. 10,000/-)

TL is designed to cater the need of young members of community organization who wants to either continue with their studies or to invest in some technical course such as gaining computer literacy. Loan is repayable in easy monthly installments, which a student can comfortably pay out of his/her pocket money.

Enterprise Development Loan: (ceiling Rs. 50,000/-)

EDL is specifically designed to develop the rural as well as urban micro-enterprises, which often exhibit a need for continuous financing. The product ensures a continuous injection of funds to the promising enterprises based on entrepreneurs outstanding repayment behavior.

 

 

Further Details of our Microfinance Programme can be requested at srsc@brain.net.pk