Gross Loan Portfolio USD, 2011: 643.6 million
Number of active borrowers 2011: 5.0 million
Average loan balance per borrower USD, 2011: 129.8
Deposits USD, 2011: 273.5 million
Assets USD, 2011: 672.8 million
Number of depositors 2011: 6.8 million
Activities of BRAC:
BRAC was founded as a relief organization in 1972 after the liberation of Bangladesh (BRAC2009a). It initially helped refugees returning from India and soon broadened its focus to long term sustainable poverty reduction. Its holistic approach to poverty alleviation and empowerment of the poor include a range of core programs in economic and social development, health, education, and human rights and legal services. Today, BRAC employs more than 115,000 people, the majority of which are women, and reaches more than 110 million people with its development interventions in Asia and Africa. BRAC had 6.3 million active borrowers and an outstanding loan portfolio of 648 million Dollars in 2008 and was listed as the biggest MFI at the Mix Market both in terms of borrowers as of loan portfolio size. It operates in 69‘500 villages throughout 2705 branch offices and the average net income after taxes from 2004 to 2007 was US$ 14.6 million (Mix Market, 2009c). BRAC‘s major development programs comprise its Economic Development Program, Health Program, Education Program, Social Development Program, Human Rights & Legal Services, Disaster Management and Environment & Climate Change (BRAC, 2009b). The paper focuses on its microfinance operations within the Economic Development Program. Product delivery
Like Grameen Bank and ASA, BRAC uses the group-based lending-methodology as well. According to its website, BRACs approach differs from that of other institutions in the way that they utilize a ― […] credit-plus approach where loans are accompanied by various forms of assistance for the borrowers, such as skills-training, provision of higher quality inputs and technical assistance as well as marketing for finished goods.‖ (BRAC, 2009c).There are two different microfinance products: microloans (group-based, exclusively for women) and microenterprise loans (individual loans for both men and women). For each of these products there are three different schemes: Dabi, Unnoti, and Progoti. Group based small loans are particularly designed for the lower end poor. Microenterprise loans are aimed at small entrepreneurs for expanding their businesses.
BRAC organizes its members into so-called ―village organizations‖ (VO) of 30- 40 women. These VO‘s gather regularly for meetings and address their financial or non-financial matters. BRAC encourages its members to use its credit facilities to start new enterprises or expand existing ones and as they increase their business, they become eligible for larger loans. Products
Dabi is BRACs core microfinance product. It is aimed at poor landless women and provides access to microloans and savings schemes. As of 2008, a vast majority of BRACs microfinance clients were Dabi members. The average loan size in 2007 was $121, and interest rates have remained at 15% flat (BRAC, 2009c). - Unnoti
Unnoti provides financial services to small and marginal farmers who own more than one acre of land. Loan sizes range between US$ 147-735 and interest rates are 15% flat (BRAC, 2009c). - Progoti
Progoti provides financial services to the ―missing middles‖. These are small entrepreneurs who won‘t get a loan from commercial banks and at the same time aren‘t targeted by microfinance programs because they do not fall into the category of landless poor. Progoti provides larger loans to BRAC and non-BRAC micro entrepreneurs. Interest rates are 15% flat. Market share:
The newly established MRA publishes information of its registered NGO-MFIs on a frequent basis. For 2007, it included 425 institutions’ reports in its statistics (An Overview of NGO-MFIs in...