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ESAR Micro-Finance ایثار مائیکروفنانس
Arshad MehmoodHead of ESAR Program3rd Islamic Microfinance Forum8th October 2013, Dubai-UAE
Helping Hand for Relief and Development-HHRD
» VisionHelping Hand as a Leader... Empowering lives, creating opportunities and
strengthening the bond of humanity » Mission
Helping Hand is committed to serve humanity by integrating re-sources for people in need. We strive to provide immediate response in disasters, and effective programs in places of suffering, for the pleasure of God.
“Muslims for Humanity”
» HHRD was established to fulfill the responsibility of
Muslim community towards humanity regardless of race, gender, ethnicity, class, location, religion, color, cultural diversity and social background.
“Who feed the poor, the orphan, and the captive for the love of Allah, (saying) ‘We’ feed you for the sake of Allah Alone; we seek from you neither reward nor thanks, for we dread our Rabb’s (Lord) torment of a very distressful Day”. (Qur’an Surah 76, verses 8, 9, 10)
Core Programs of HHRD
» Health » Emergency Response » Physical Rehabilitation » ESAR Microfinance » Skills Development » Orphan Support Program » Water for Life » Infrastructure Development » Education » Seasonal Program » In-Kind Donations Program » Children with Disability Support
ESAR Microfinance’s Mission
» To facilitate and support livelihood opportunities and microenterprise development for poverty alleviation through provision of Islamic Microfinance as a Flagship Program of HHRD
ESAR Program’s Objectives
» To enable economic wellbeing and resilience for people with low incomes, especially suffering the disaster, through interest free microfinance.
» Provide social assistance, capacity building and integrated development ingredients to support the poor break the poverty cycle by creating the spirit of brotherhood.
» To institutionalize the ESAR Microfinance Program regarding sustainable, growth-oriented and replicable one.
History
2009
• Starting of Interest Free Microfinance - IFMF Program
2010
• Initial Stage, declared as a seprate program of HHRD
2011
• Extension of IFMF Program from AJK and KPK to Punjab, Sindh and Baluchistan
2012
• A Pardigm Shift launched for the sustainability of the IFMF Program; shifted from Qarad e Hasan to profit-loss modes of financing
2013
• Decleired as year of sustainiability
Progress
No. of Clusters 26Geographic Coverage (District and UCs) 24 Districts, 26 UCsAccumulative Beneficiaries 10,107Accumulative Disbursement PKR 230 MillionActive Beneficiaries 5,569Recovery Ratio 99%
SME40%
Services6%Livestock
7%
Agriculture45%
Asset Base1%
Poultry1%
Targeted Income Generating Activi-ties
Before 2010 Dec-10 Dec-11 Dec-12 Sep-13
163 535
3583
6168
10107
Accumulative Beneficiaries
Outreach
◘ Mansehra
◘ Rawalpindi ◘ Mianwali
◘ Muzaffargarh
◘ Rajanpur
◘ Dir
◘ Bahawalpur
◘ Ziarat
◘ Jaffarabad ◘ Jacobabad ◘ Kashmoor ◘ Shikarpur
◘ Chitral
◘ Kotli ◘ Rawalakot
◘ Hattianbala
◘ Gilgit
◘ Thatta
◘ Swat
◘ MalakandCharsada ◘Nowshera ◘
◘ Benazir Abad
◘ Matiari
◘ Tando Allah Yar
HHRD’s Interest Free Microfinance – IFMF Program
◘ Mirpur Khas
• Cluster Base Approach• Participatory Approach: Community oriented • Interest Free: Islamic Modes of Financing• Sustainable: Operational Self Sufficiency• Universally Replicable• Branchless Network with Online System• Shariah Certified• Enhancement of Income Generating Activities• Livelihood Supportive with Capacity Building Component• Breaking the Poverty Cycle through Integrated Approach• Humanitarian Essence • Believed in Potential of Poor• Transparency through third Eye (through Community
Humanitarian Forums)
Features of HHRD’s Model
Implementation Strategy
Area Identification
HR Selection & Facilitation
Base Line Survey
Target Group Identification
Community Mobilization & Organization
Disbursement
Recovery & Follow up
Cont.
» Area Identification+ Acutely affected during any disaster and declared by concern
authority+ Relief activities completed + Special area identified by donor
» Human Resource Selection & Facilitation+ Microfinance Facilitation Officer – MFO work at cluster level+ Locally announced for suitable candidate, having master degree
and preferred development sector experience+ Test and interviews held and appointed at merit+ Capacity building regarding field operation and basic concepts+ Facilitation regarding transportation, mobile phone, laptop,
internet, camera etc.
» Base line survey.+ Identification of Activists+ Union Council Profile+ Village Profile
» Identification & Selection of Beneficiaries.+ Individual meeting with people who engaged with different
Income Generating Activities (IGAs)+ Dialogs.+ Mobilization.+ Selection of beneficiaries.
Cont.
» Community Mobilization & Organization.+ Program Introduction.+ Listing the members, there should be 15-25 members in a
CO/MC.+ With mutual consultation, members elect their President and
Manager.+ Every member make saving as possible.+ To fix the time, day and location for the meeting of CO/MC and lay
stress on the 100% attendance.+ Community Organization (CO)/Market Committee (MC) formed.
Cont.
» Disbursement.+ CO/MC nominates the potential borrowers and passed resolution.+ Borrower appraisal by Microfinance Facilitation Officer (MFO).+ Appraisals sent to Head Office along with CO/MC resolution and
two pictures & copy of valid CNIC.+ Appraisal analysis and verification.+ Delivery of cheque.+ Agreement b/w HHRD & beneficiary.+ Distribution of cheques/items.
» Repayment.+ Repayment in 10 monthly installments or lumsum.+ Recovery through CO/MC.
» Follow-up and assistance.
Cont.
Assistance Mechanism
In-depth Analysis
Field Level Scrutiny
Initial Stage
Social Mobilization
Beneficiaries Identification
Appraisal
CO & CFCMicrofinance Facilitation
Officer
Follow up
Country DirectorMFC
Recovery
Program Officer
RejectedApproved
Disbursement
Regional Coordinator
Financing Mechanism
Sustainable Financial Model
Cluster Each Union CouncilAverage Portfolio ($48,000 given every six months) $96,000Average Number of Beneficiaries‘ (Every Six Months = 150) 300Portfolio of Each Beneficiary $320Operational Expenses' $14,000Operation Cost Ratio 14.58%Recovery Profits $14,000
Expenses = Profits
Case Study
Abdul Majid from Batakundi, Naran
Valley – earthquake
affected area and Pea farmer
Received seed and fertilizer from money lender.
The price was very high.
Delivery not timely.
Bounded to sale out the production
to same money lender.
Sale price low compared to market price.
Problem
Financial assistance with out
exploitationGot seed and fertilizer from
HHRD on Murabah bases having amount PKR
35,000
Solution
Got required inputs at low price
and timelySale out the
production in open market
Got PKR 70,000 additional benefitShifted his kids to upper level schoolPurchased some household items
Result
KPK
A Beneficiary from Agra-Charsada
A Beneficiary from Nowshera A Beneficiary from Madyan-SwatDistribution Ceremony Kalam-Swat
Material handing over at Chitral A Beneficiary from Lower Dir A Beneficiary from Shinkiari
Distribution Ceremony Naran Valley A Beneficiary from Thana-Malakand
Punjab
Community Meeting at Jampur Distribution at Kot AdduDistribution at Rawalpindi
Distribution at Mianwali A Beneficiary at Goth Mehrab Bahawalpur
A Beneficiary at Tiba Badar Sher Bahawalpur
Sindh
A Beneficiary at Sultan Kot-Shikarpur Introductory Meeting Zhair
Pir-Matyari
A Beneficiary at Tando Hafiz Shah-Thatta
Community Meeting at Bandhi-Nawab Shah
A Beneficiary at Thulli-Jaccobabad
Community Meeting Tando Allah Yar
A Beneficiary at Ghous Pur-Kashmoor
Baluchistan & GB
A Beneficiary at Dirgi-Jaffarabad, Baluchistan Distribution Ceremony at Ziarat, Baluchistan
Distribution of Items at Jaglot-Gilgit
AJK
A Beneficiary in her Kitchen Garden, Hurnamera-Rawalakot
Distribution of Sewing Machines at Tarala-Kotli
Community Meeting at Lamnian-Hattian Bala
192 Ahmad Block, New Garden Town, Lahore - Pakistan.Ph: (92-42) 35913096 - 98, Fax: (92-42) 35913056
Email: [email protected]
www.alhudacibe.com