Innovative, client focused and sustainable, the BRAC microfinance programme is a critical component of our holistic approach to support livelihoods. Over the course of the last four decades, we have grown to become one of the world’s largest providers of financial services to the poor, providing tools which millions can use for the betterment of their lives.

1. BRAC Microfinance
Programme
www.brac.net

2. Dabi
• Average Loan Size - $225
• Loan Term – 1 year
• Repayment Mechanism – Equal weekly/monthly installments
• More than 97% of borrowers are women who are serviced in
groups, but there is no joint liability obligation
• Loans are mostly used for small operations in poultry,
livestock, vegetable cultivation, handicrafts and rural trade
www.brac.net

3. www.brac.net

4. Progoti
• Average Loan Size – $2,050
• Loan Term – 12/18 months
• Repayment Mechanism – Equal monthly installments
• Borrowers are individually catered and the loans are
typically used to finance working capital for shops,
agricultural businesses and small manufacturing
www.brac.net

5. www.brac.net

6. Top-up Loans
• Introduced in 2010 for both Dabi and Progoti
borrowers to provide greater flexibility
• Allows borrowers with good repayment
behaviour to top-up an existing loan
• Available to borrowers who have repaid at least
50% of the existing loan on time
• Maximum top-up amount is 50% of original
disbursed amount
www.brac.net

7. Migration Loan
• Targets people migrating overseas for work
• Covers cost of obtaining work overseas
(recruiter fees), travel and travel document costs
• Average Loan Size - $1,915
• Repayment Mechanism – 12/18 unequal
monthly installments.
• Till date – $34.5m have been disbursed to
18,000 migrant workers.
www.brac.net

8. www.brac.net

9. www.brac.net

10. Savings
• Regular Passbook Savings
• Monthly Deposit Scheme
• Double Deposit Scheme
• Fixed Deposit Scheme
www.brac.net

11. www.brac.net

12. BRAC Microfinance at a Glance
Bangladesh
Particulars
As of October
2012
Loan Portfolio:
$ 715 million
Savings:
$ 286 million
Members:
6.02 million
Borrowers:
4.42 million
Average Monthly Disbursement:
Staff:
$ 103.7 million
17,988
www.brac.net

13. www.brac.net

14. Industry Position (As of October 2012)
Particulars
BRAC
ASA
Grameen
Bank
BURO
Bangladesh
Portfolio:
(Million)
$ 715
$ 683
$ 973
$ 113
Savings:
(Million)
$ 286
$ 188
$ 1,441
$ 36
Borrowers:
(Million)
4.42
4.27
6.61
0.86
Branch
Offices:
2,359
3,047
2,567
629
www.brac.net

15. Human Resource Management
Set up an internal HR unit that is working to:
– Standardize performance assessments
– Improve talent identification and management through
setting up a management pipeline
– Improve workplace environment
– Mentor new female staff
– Improve grievance management practices
www.brac.net

16. Capacity Development
• Much greater investment in training of staff
• Shift in focus from technical to managerial skills
training
• More emphasis on soft skills development of
staff at all levels
• Greater coordination between performance
assessment, talent management and training
www.brac.net

17. Strengthening Internal Controls
• Branch accounts staff separated from microfinance and
placed under Finance and Accounts Division in late 2009
• Strengthened the monitoring units to ensure more
regular and thorough monitoring of branches
• Comprehensive branch reviews carried out by
independent teams to look at qualitative aspects
• For the worst performing branches, we have started a
system of independent loan adjudicators who verify and
approve every loan prior to disbursement
www.brac.net

18. Financial Literacy and
Consumer Protection
• Working with BRAC Development Institute to
design and implement financial literacy projects
– Piloting basic financial literacy awareness building
through popular theatre
– Working with a social communication agency to
design mass media outreach programmes
• Adopted an employee code of conduct
• Working to improve the quality of staff-client
interface
www.brac.net

19. Trend: BRAC Microfinance
Bangladesh
Particulars
2009
2010
2011
2012
(October)
Portfolio:
(Million)
$ 537
$ 534
$ 644
$ 715
Savings:
(Million)
$ 224
$ 243
$ 272
$ 286
Disbursement:
(Million)
$ 922
$ 899
$ 1,052
$ 1,037
PAR
(>30 days)
9.9%
10.3%
7.9%
6.9%
116.4%
118.6%
110.8%
128.0%
Operating Self
Sufficiency
www.brac.net

20. BRAC International Microfinance at a Glance
Country
Portfolio
(Million)
Avg. Monthly
Members
Borrowers
Disbursement
(Million)
Branch
Offices
Pakistan
$ 9.18
87,528
77,927
$ 1.53
96
Sri Lanka
$ 8.71
108,181
62,973
$ 1.57
89
Tanzania
$ 20.46
136,278
108,238
$ 3.94
112
Uganda
$ 19.36
156,286
124,306
$ 3.61
130
Sierra Leone
$ 2.69
25,807
21,521
$ 0.41
43
Liberia
$ 3.18
32,625
23,391
$ 0.53
30
www.brac.net

21. Priorities in 2013
• Bangladesh
– Scale up financial literacy and consumer protection projects
– Pilot savings collection through mobile money platforms
• International
– Focus on strengthening capacity of staff at all levels
– Reducing the dependence on Bangladeshi staff and accelerate
promotion of national staff into management positions
– Strengthen internal controls
www.brac.net

22. Thank You
www.brac.net