islamic microfinance · islamic microfinance group liability lending mechanism microfinance unit...
TRANSCRIPT
![Page 1: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/1.jpg)
Islamic Microfinance Group Liability Lending Mechanism
Microfinance UnitCentral Bank of Sudan
![Page 2: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/2.jpg)
Target Clients
• The entrepreneurial poor in urban and slum districts
![Page 3: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/3.jpg)
Loan application procedures
1) Formulation of liability group :
Interested micro enterprises asked to form a five-person group
![Page 4: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/4.jpg)
Loan application procedures
2) Submission of loan application:
Group members submit loan application with the support of the microfinance program officer
![Page 5: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/5.jpg)
Loan application procedures
3) Collaterals:
Group members sign a guarantee form indicating their agreement to vouch for one another
![Page 6: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/6.jpg)
Loan application procedures
4) Business appraisal :
MF officer does simple business appraisal and submit for approval
![Page 7: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/7.jpg)
Implementation First Step:
Request for documents
Sign of contracts or loan agreement ,
![Page 8: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/8.jpg)
Implementation
Second Step:Purchase of goods and resell to borrows in case of Murabaha or relase of funds in case of profit-sharing modes (Musharaka, Mudaraba…)
![Page 9: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/9.jpg)
Implementation
Third Step:
Open an account for each borrower ; size of installment and due date
![Page 10: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/10.jpg)
ImplementationFourth Step:
MF officer issues receipts to borrowers when collecting loan installments
![Page 11: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/11.jpg)
ImplementationFifth Step:
Collect certain amount weekly from each group member for the insurance fund to cater for emergencies.
![Page 12: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/12.jpg)
Monitoring
MF officer conduct close follow up :
• Random field visits
• Prepare monthly progress report
• Provide technical support if needed
• Prepare final reports
• Lessons learnt and best practices
![Page 13: Islamic Microfinance · Islamic Microfinance Group Liability Lending Mechanism Microfinance Unit Central Bank of Sudan. ... •Lessons learnt and best practices. What Next? Evaluating](https://reader034.vdocuments.mx/reader034/viewer/2022043001/5f79fb54e4ca1b3fde30e448/html5/thumbnails/13.jpg)
What Next?
Evaluating the experience
Scaling up of the business