Post on 23-Jan-2015
description
First Islamic Microfinance in Pakistan 1
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FARZ METHODOLOGY
First Islamic Microfinance in Pakistan 3
Vision“To bring social change through
poverty alleviation by improving
productivity and capacity of clients
and staff”
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MissionEmpowering the poor
through innovative products and diverse
business opportunities, by integrating social
performance focused microfinance with collaborative community
health and education partnerships.
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Farz Methodology
Expanse (-) Income (+)
FF support to client’s for Enhance its Business income
FamilyFamily
Profitable Business
Profitable Business
Asset Building
Asset Building
FF create habit in Client’s Life that they build asset through “FARZ COMMITTEE”
FF create habit in Client’s Life that they build asset through “FARZ COMMITTEE”
Health Health
FF Save health Expanses of their Clients through “Health Care Services”
FF Save health Expanses of their Clients through “Health Care Services”
Child Future Protection
Child Future Protection
FF Aware to clients that they focus on their children Education through “Children Education Awareness program”
FF Aware to clients that they focus on their children Education through “Children Education Awareness program”
Other Source of Income
Other Source of Income
FF facilitate to their Clients for creating other source of income through “Mudarbaha”
FF facilitate to their Clients for creating other source of income through “Mudarbaha”
Average life of family40 year
Needs & Wants of one Family
Male (Avg 20 year old)
Female (Avg 20 year old)
Start
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TARGET MARKET
Business & Environmental education
Health
Financial Service
An Integrated Approach
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TARGET MARKET
Upper
Middle
Lower
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LowerNon-Poor
• Large Murabaha + Takaful + Committee (participatory saving) +Health Care Awareness +Business & Environmental Education
Poor
• Medium Murabaha +Takaful + Committee participatory saving) +Health Care Awareness +Business & Environmental Education
Moderately Poor
• Small Murabaha + Takaful + Committee (participatory saving) +Health Care Awareness +Business & Environmental Education
Poorest of the poor
• Zakah or charity in kind or in shape of income generating tools) +Health Care Awareness +Business & Environmental Education
Product Packages for Each Market
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Murabaha
Product Trade Size
Murabaha (Small) PKR: 5,000 to 30,000
Murabaha (Medium) PKR: 31,000 to 80,000
Murabaha (Large) PKR: 81,000 to 150,000
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MurabahaTarget for One Social Center (Branch)
Product Target
Murabaha (Small) 1,080 Clients
Murabaha (Medium) 180 Client
Murabaha (Large) 0
Year 1st
11
Clients Graduation Strategy
1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year0
200
400
600
800
1000
1200
1080
734
499
340
231
157
10773
49 34
180
468
553536
473
396
319
251
194
148
0
58
207
384
556
707
834
936
1017
1079
Murabaha Small Murabaha MediumMurabaha Large
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Identification of Area for Operation To allocate the Area for Social Center (Branch) To allocate the Potential working areas for social center Product need assessment.
Potential businesses. Cash flow of different businesses. Size of micro trade.
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Staff Hiring
Add for staff hiring in local News paper. Collection of CVs as per given date. Short listing of CVs and finalize prospective
Candidates for interview. Sending calling letters to all selected interviewees.Conduct 1st interview
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Capacity Building of Staff To deliver the orientation of FARZ FOUNDATION to final candidates for jobs. To deliver three days Step-in-Training to all Selected staff.(In house)
Islamic banking & finance . Conventional microfinance Farz Methodology Basic Selection criteria of FARZ FOUNDATION Area survey Effective Mobilization skills Clients appraisal training Cluster formation steps Conduct of community meetings Customer relationship management Social performance management Delinquency management Monitoring
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Three days on the job training to the staff. Basic Selection criteria of FARZ FOUNDATION Area survey Effective Mobilization skills Clients appraisal training Cluster formation steps Conduct of community meetings Customer relationship management Social performance management Monitoring Islamic banking & finance . Conventional microfinance Farz Methodology
Interview and selection for one month internship Selection for 11 month on a contract. After 11 month, contract extension / permanent
employee.
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Social Center (Branch) Opening
Social Center Opening Ceremony Mobilization
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Kicking of Operations
Social Manager
Accountant
SO Small
Murabaha
SO Small
Murabaha
SO Small
Murabaha
SO Medium
Murabaha
Office Boy
Branch Structure
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Cluster Manager
Group Leader
Member
Member
MemberMe
mber
Group Leader
Member
Member
MemberMe
mber
Group Leader
Member
Member
MemberMe
mber
Cluster structure
CLUSTER COMMITTEE
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Delivery ProcessStep 1 • MOBILIZATION
Step 2 • COMMUNITY MEETING CONDUCTED BY SOCIAL OFFICER (SO)
Step 3 • TO FINALIZE THE CLUSTER MANAGER AND GROUP LEADERS
Step 4 • HOME SCREENING
Step 5 • BUSINESS SCREENING
Step 6 • FINAL FORMATION MEETING
Step 7 • SALE AGREEMENT AND DELIVERY OF ASSET & STOCK
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MOBILIZATION
Identification of potential clients within above mention target market.
Identification of the potential businesses.
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COMMUNITY MEETING
What is the eligibility criteria for taking our product Systems and procedures for taking our product. Your and our responsibilities for managing social
performance at cluster level. Introduction of program.
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HOME SCREENING + Know Your Client & Application Form Filling
Verification of Client’s according to the member selection Criteria
Information Collection (Home Related)
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BUSINESS SCREENING + Know Your Client & Application Form Filling
Verification of Client’s Business according to the member selection Criteria
Financial Analysis Repayment Capacity Business Information Collection
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FINAL FORMATION MEETING Approval of Trade (Murabaha)
Briefing to the Clients about Sale, purchase, price, cost, profit, sale agreement, System, Procedures and repayments Schedule
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ASSET/STOCK PURCHASING
Selection of standardize Venders/Whole Sellers To Purchasing of Asset / Stock as per demand of
Client’s Business
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SALE AGREEMENT and DELIVERY OF ASSET/STOCK
Transparency of Sale Agreement Transfer of Ownership
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MONITORING & EVALUATION
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Daily, weekly, monthly, quarterly and six monthly reports system.
Field visits of bottom to top Management. Fortnightly Meetings with 100% Clients. Social Performance Management.
MONITORING & EVALUATION
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Asset Building
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Farz CommitteeHeads Features
Committee Size Min= PKR:100 and Max=unlimited
Period of Committee Cycle 11 Month
Participants of Committee in Each Group 10 Members + 1 Farz Foundation=11
Number of Committee Groups under One Cluster
Min=1 and Max=3
Frequency of Committee Installment Fortnightly
Frequency of Committee Draw (lucky draw)
Every Month
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Committee Group
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Committee Pool and Total Collection= PKR: 2,200
10 Members of Community from One Cluster
10 Members of Community from One Cluster
Farz Foundation as a MemberFarz Foundation as a Member
Share PKR:200In Committee Pool
Each Member
Share PKR:200
In Committee
Pool
Farz Foundation as Committee Manager (FF)
Farz Foundation as Committee Manager (FF)
1st Total Collection of Committee Pool goes to Farz Foundation
1st Month of Committee
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Members become partner of FF
PK
R: 2,200
PK
R: 2,200 +
220 in one year
Committee Pool and Total Collection= PKR: 2,200
Members get PKR: 2,440 after one Year or Monthly PKR:20
10 Members of Community from One Cluster
10 Members of Community from One Cluster
Farz Foundation as 1 MemberFarz Foundation as 1 Member
Share PKR:200In Committee Pool
Each Member
Share PKR:200
In Committee
Pool
Committee Group OrganizerCommittee Group Organizer
2nd month Total Collection of Committee Pool goes to Committee Group Organizer
Investment Pool of Farz Foundation (FF & Community are partner in MURABAHA Business)
2nd Month of Committee
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Members get PKR: 2,440 after one Year or Monthly PKR:20
Investment Pool of Farz Foundation (FF & Community are partner in MURABAHA Business)
Members do partnership with FF
PK
R: 2,200
PK
R: 2,200 +
220 in one year
Committee Pool and Total Collection= PKR: 2,200
10 Members of Community from One Cluster
10 Members of Community from One Cluster
Farz Foundation as 1 MemberFarz Foundation as 1 Member
Share PKR:200In Committee Pool
Each Member
Share PKR:200
In Committee
Pool
Committee Group MemberCommittee Group Member
3rd to 11th, every month Total Collection of Committee Pool goes to Committee Members through Lucky Draw
3rd to 11th Month of Committee
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Health Care
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Health Care
Organizing Eye care Camps Health Awareness Program
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Future Protection
Program
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Future Protection Program Educational Support to Community children
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Entrepreneur Development
Program
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Clients Capacity Building Strategy
1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year0
50
100
150
200
250
300
350346
235
160
109
74
50
3423
16
58
150
177172
151
127
102
80
62
Trained for Murabaha Medium
Trained for Murabaha Larg
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