Nguyen Thi Hien Chi

State Bank of Vietnam, Vietnam



1. Background of Microfinance as well as participant’s Institution

State Bank of Vietnam takes past in microfinance activities in terms of setting up legal framework for these activities and institutions that practice microfinance activities.

Microfinance is very popular in Vietnam now, many institution practice microfinance in many provinces all over in Vietnam but there’s still non-legal framework on the field


2. Other’s

As planned, we, State Bank of Vietnam, will submit the final draft of microfinance framework to Prime Minister as well as to other members of Government as the last step in processing the legal document in 4th quarter of the year 2002.

Legal framework on Microfinance maybe approved as a single document, otherwise it will be a part of another legal document, legal framework on banking activities of institution other than credit institutions. The process of this document might take a longer time of setting, submitting and approving.

As I know, the draft of a legal document on microfinance is also in processing in Indonesia. I hope that we can exchange further experiences, facts, ideas for a better practice of microfinance in Vietnam as well as in Indonesia.

BRI can provide TA and training for SBU’s staff in field of practicing Microfinance activities, fact – difficulties (especially in the lack of a legal document regulating these activities). BRI can also help SBU in contacting with relevant government bodies in Indonesia to exchange experiences regarding Microfinance and Regulating Microfinance as well as experiences in setting up a legal framework on this field.

-  If the legal document on Microfinance in Vietnam is approved by Government in 2002:

*     Dec, 2002 – early 2003 : Training for SBU’s staff on Microfinance activities; on shifting MFI into formal ones  

*     April 2003                 : Implementing Regulations on Microfinance all  over Vietnam, on all Microfinance activities  and MFIS

-  If the legal document on Microfinance will not be accepted as a single legal document, we will insert Regulations on Microfinance activities in the legal document on banking activities of institutions other than credit institutions (as mention above):

- 4th quarter of 2002  :   Complete the final draft

- 1st quarter of 2003 :   Submit the final draft to the Prime Minister and other  members of Government

- During that time     :   Fieldtrip to other countries to get further understanding on Microfinance practice and how other countries regulate these activities.

Loch, Riem Deth

Department for Rural Economic Development

Ministry of Rural Development






Cambodia is one of developing countries in the region covering a surface of 181, 035 km2 with a total population of 11.7 million people, equivalent to households. 85% of the population lives in rural areas where farming, fishing and traditional crafts are the daily business activities. The royal Government of Cambodia gives top priority to its social development programme for poverty alleviation in rural areas and uses all means and resources for the rehabilitation of economic development in order to raise living standards of rural people. Therefore the government has introduced a key mechanism for poverty alleviation. It is support and strengthening of microfinance services in rural areas through the Rural development Bank and International Micro Credit Operators (MFOs) for provision of credit services in support of agriculture and rural economy based on free market for development, efficiency and sustainability.

PRASAC (Programme de Rehabilitation et d’Appui au Agricole du Cambodge) means support Programme for the Agricultural sector in Cambodia. PRASAC started in 1995 as a European Union (EU) Sponsored Cambodian emergency relief and rehabilitation programme in Six provinces. The Cambodian counterparts are Ministry of Rural Development, Agriculture and Rural Development Bank. The first phase of PRASAC was in 1998 named PRASAC I and has ended in April 1999. PRASAC II, the second phase, run from May 1999 until December 2003. Finally Credit scheme of PRASAC was renamed into PRASAC CREDIT ASSOCIATION or PCA, to be licensed with the ministry of interior and registered with the National Bank of Cambodia to be Micro Financial Institution (MFI).



  • To provide fund to farmers to buy agricultural equipment;

  • To provide fund for storage and sell it at the appropriate price of choose;

  • To provide financial resources for setting up, expansion, and improvement of their business;

  • To provide vocational training on agricultural production program, allowing farmers to understand the mechanics of implementation economic development project, property with credit allocated for each household;

  • To reduce the very high interest rate credit from moneylenders;

  • To create more jobs for rural people in order to reduce migration to look for job in the City and other Urban areas;

  • To strengthen solidarity among the members of community and to improve the implementation of law and regulation.



There are two main loan products of PRASAC Credit Association (PCA):

1.   Group Loan:

Character based (village) group loans (guarantor groups of 5 – 10 persons). The villagers are organized in guarantor groups in order to access loans for income generating activities without the need for collateral. There are two models of Saving & Credit Associations as group loan delivery mechanism:

Model 1:

This loan product is tailor made for villagers who form solidarity groups for the single purpose to gain access to group loans. The solidarity groups guarantee for each other by peer pressure without need to provide physical collateral to PCA. Group members decide who joins the group. They elect their group leaders who act as contact persons for loan processing.

Model 2:

SCA model 2 is a village level financial intermediary that manages its own internal funds. Member are encouraged to save monthly a     minimum of about 0.1 $ to 0.2 $ to build up the internal fund.

The internal fund is further capitalized by:

  • Interest income earned from internal fund loans

  • Performance incentives from PRASAC Community Development Programme

  • PCA rebates from on – time repayment of PCA loans.

  • SCA (Saving & Credit Association) members have also access to group loan from PCA. Villagers are generally helped by PCA staff in forming guarantor group of 5 to 10 members. SCA model 2 operate  like village banks providing profitable financial services to their members members and also and also non-member. Group members     decide and elect their Saving & Credit Association (SCA). SCA   members guarantee for each other by peer pressure within their       solidarity group. In case a SCA member fails to repay a loan given     (partly or in full), the internal fund of the SCA model 2 acts as     additional guarantor for full repayment of capital and interest. There is        no requirement to provide physical collateral.

1.1     Procedures to process group loans:

-   First Stage: Branch manager and responsible Credit Officer visit the field to ascertain the operational area, to detect the economic potential, client needs and requirement, living conditions, main occupation (like rice growing) or existing competition of NGO’s or other Credit Provides etc.

-  Second Stage: After positive decision to activate a operational area, the Branch manager shall visit the local authorities in order to have PCA recognized officially as credit provider. PCA explains to all officials on villages, commune and district level its objectives, policy, procedure mission and vision.

-   Third Stage: after written permission from local authorities, credit shall create a specific plan how to explain to the villagers the objectives and policy and how the people of the district, villages can have access to loan from PCA. In specific meeting sessions at village level (at 3 to 4 before actual loan processing) PCA staff explain all details about loan size, loan circles, loan duration, interest rate, guarantee etc.

-   Forth Stage: Processing of loan application forms. PCA credit staff together with SCA committee and group leaders shall set a date to process all loan application in the village. All loan applicants are required to have their application verified with their thumb print on the form. After completion all forms must be handed over to PCA staff to complete process at responsible PCA branch.

-   Fifth Stage: Loan distribution in the village. The loan disbursement will be authorized by the PCA Branch loan committee. PCA Credit staff will together with respective SCA committee /group leaders set  a date of loan distribution a village grounds. Every group member must verify with his/her thumb print the actual receipt of the loan principal.     


2.      Individual Loan:

The target clients for individual business loan are micro entrepreneurs operating in rural and semi – urban economy of Cambodia. Target clients are producing (or offering services) in rural and semi – urban     markets.

PCA gives priority to entrepreneurial activities that are linked to the agricultural sector, such as veterinarian services, manufacturing of farm tools, repair of farm tools and equipment, trade in farm inputs and produce etc. However, PCA is also targeting clients engaged in non-agricultural sector in order to diversity its portfolio and the corresponding lending risks.


2.1  Procedures to Establish Individual Loan:

-  First Step: The credit officer responsible for the designated area will visit the prospective individual clients. During the first meeting PCA credit staff will ask general questions to find out whether the future possible loan should be classified purely as individual loan or qualifies as small and medium enterprise loan.

-  Second Step: The second meeting with the potential client PCA credit staff will check the loan application form, certify ID cards and assess the business and cash flow plan of the applicant. PCA staff will also remind to the clients about loan conditions and ask the client to meet at his/her house to check his/her activities within maximum 3 days. Within that time PCA staff will visit local authorities to verify applicants residential status, identification, family registration cards etc.

-  Third Step: The loan conditions (including amount, interest rate, duration, collateral, guarantor family and outside) should be discussed and finalized. All documents have to be passed to Branch Manager for final decision. If decision is positive all legal verification and loan contract documents have to be arranged (thumb prints).

-  Forth Step: PCA staff informs the prospective client about the positive/negative loan decision. More discussions might have to follow on Branch Managers level In case of a negative decision. In case of a positive decision a date has to fixed for loan disbursement. At the time of loan disbursement in PCA Branch Office, PCA credit staff should again explain loan procedures, especially repayment conditions of principal and interest.


According to the situation of micro finance in Indonesia and Cambodia, there are many points that are different. But we have some common status, products, principal’s etc. through the training course, we have got new concepts and good experiences from BRI to improve micro credit scheme in Cambodia. It means we will select all good successful mythologies and strategies of BRI that there are no in Cambodia so that the Cambodian micro credit scheme could get success in implementation and improve.



Depend on the policy of government on micro credit scheme we need much time to change experiences each other for successful implementation. The action plans for implementation in Cambodia are:

-  To extend micro financial services;

-  To reduce interest rate;

-  To encourage wide competition among micro finance operators to reduce interest rate and operate more efficiently and sustainable manner;

-  To promote domestic saving mobilization;

-  To promote local authorities to act as facilitators in coordination and cooperation with micro finance operators;

-  To include good experiences that get from BRI or training in micro credit scheme.

Tabrani Yunis

Centre for Community Development and Education (CCDE), Indonesia


1.  Center for Community Development and Education (CCDE) is a local NGO in Aceh. It was established in November 30,1993. The painful life of women who have less access. Forward natural, economic, education, politic and gender injustice encouraged 3 founders of CCDE established CCDE.

The existence of CCDE is to response the painful condition of women’s life in Aceh. Therefore, is set two main programs for empowering and strengthening women in Aceh.

CCDE provides social services and financial services

-  The social service includes, training and other educational activities

-  The financial service is by providing micro credit for 28 women group in four districts in Aceh


2.   The objective of Micro Finance Programs are

-  To alleviate poverty 

-  To Empower and strengthen women in small business

-  Creating employment


3.   CCDE has been provided micro credit scheme for woman through women groups. CCDE sets the micro credit schemes with women in democratic nuance

-   Small scale loan

-   No collateral

-   Fast

-   Etc


Proposal micro credit scheme which will be enhanced

  1. Loan of fund (fund raising)
  2. Technical Assistance
  3. Training
  4. Scholarship for staffs (capacity building)


















Fund Raising






















Technical Assistant














Capacity building

- Scholarship










Disimburse the micro credit




Marasembi, Henry, Mr.

Small Business Development Corporation




1.  In the Government National dialogue and Medium term development Strategy (MTDS) and its recently adopted Small and Medium Enterprises (SME) policy, the private sector development is defined to play a paramount role for the future of PNG. The next step is to address the weakness of the existing financial system in order to improve the provision sector.

The expected changes in relevant legal framework therefore need to emphasize enhanced economic integration on micro and small enterprises as well as for those who want to save money for their future financial needs.

Since the commercial banking sector does not cater for the poorer strata of the population, which is the majority, the demand for services bye the less affluent remains an attended a number of attempts have been made by NGO’s government departments and the donor community to addresses this issue. Various type of micro credit schemes have been piloted but with rather limited success. Most of them have been established on an adhoc basis without qualified staff and sufficient resources. Very few know of each other existence and all try to reinvent the wheel. Four of these schemes is the supply of credit. Saving are not mobilized. In addition, PNG banking regulation only permit deposit taking by institution that hold a full banking license and micro credit schemes are not in the position to fulfill the relevant requirements.


In this connection, a draft micro finance poling was drawn up by major stakeholder to provide a conducive framework for existing and future institutions either upgrade existing credit schemes or downscale financial products. The objective of the proposal micro finance policy is to establish a framework that leads MFI’s towards enhanced institutional capacity, and better access to refinances mechanism in order to support the development of formal and informal enterprises and the population currently excluded from mainstream financial services


2.  Objectives & Scope

The Project our all objective is to contribute to economic growth through private sector development and employment creation and the further development of the financial system. The specific objective of the project in to provide sustainable microfinance services to viable formal and informal enterprises and saving service to the population at large.

          The project comprises three broad components/output:

I)   Capacity building of MFI’s through a micro finance competence (centre) or seeking BRI micro credit technical assistance in training

II)    Development, testing and implementation of new saving and loan product and delivery methods

III)   Provision of a revolving refinance facility

The project will operate nation – wide. My institutions objectives attached  (refer appendix #1)

3.  There are some NGO’s operating some micro credit programmes which are uncoordinated, and monitored so there is so lack of available information

4.  The proposed Micro Credit Project in consultation with SBDC and BRI NAM to provide technical assistance and further training


Attached in proposed action plan and implementation programme


Programme Activities


By Whom

By When



A.      Capacity Buildin

1. Micro Credit    Technical Assistance Training


-    Awareness creation

-    Visiting new MFI

-    Identifying & Selecting nominees

-    Conduct training


Small business Dev. Corp. Staff

Henry Marasembi






November 2002


February 2003

Budget to be drawn to be financed by Donor Agencies NAM/BRI




Approval funds to be sought

B. Development of Products

-    Consult & work with BRI for development of products


Small business Dev. Cooperation new micro finance institution

February 2003

During training

Budget to be drawn & financed NAM/BRI


C. Establishing a revolving fund for MFI


Liase wit it donors/funding agencies for setting up revolving fund


May/June 2003

Amount of revolving to be determined

- seek assistance from NAM & BRI

Discussions and negotiations to be established with donors.




1.   Background of (my) Institution Small Business Development Cooperation.


The small business development cooperation became operational in 1992 and is mandated, through the SBDC Act. 1990 to assist Papua New Guinea no start and improve small – scale business for employment creation and to improve the standard of living in the country.


  1. Create an environment that will facilitate maximum small enterprise development in the country through the recommendation development and implementation of appropriate policies and program in consultation with the Ministry of Commerce and industry and other government departments and agencies
  2. Act as a sounding board or the Government, DCI, and other line agencies for the development of SME’s to the year 2020.
  3. Create a national cost effective and efficient mechanism for the delivery of the small business sector through the collection and dissemination relevant information and effective networking arrangements
  4. improve the success rate & included the number of PNG owned and operated small business through the facilitation of extension services, training programs and financial incentive schemes to individuals demonstrating the ability to own and operate small business.

Eni Astuti

Skill Improvement and Life Quality Foundation of Archipelago, Indonesia



I.       Background

Yayasan Pengembangan Keterampilan dan Mutu Kehidupan Nusantara (Skill Improvement and Life Quality Foundation of Archipelago), is a Jakarta based NGO whics was established in May 27, 1986. its mission is active in improving the quality of life of poor people in Indonesia.

To obtain or reach the mission. Yayasan Pengembangan Keterampilan dan Mutu Kehidupan Nusantara (PKMK Archipelago foundation) provide two main programs

  1. Education an Training service program such as training on treating old ages people, baby setting/home nurse training.
  2. Microfinance

PKMK Archipelago foundation also provides micro credit for women who want to take a course or training at PKMK Archipelago foundation.

II. The Objective of Micro credit

-   To Increase women’s income through their skills an micro credit that they received

-   Employment

-   Preparing skilled and trained workers

III. Scheme

The micro credit is distributed to the participants of the course who have full field the requirements needed. The repayment after having a job needed is monthly.

IV. The proposed activities and time framework/implementation

The proposed micro credit scheme which will be enhanced are as follows:






Technical Assistance

December 2002



March 2003


Increasing Capital for Micro credit

October 2002



Rachman Windhiarto

SPEKTRA, Indonesia

1. Background

Ø   With 35 million inhabitant, East Java province still holds poverty problems of 5 million people and 600.000 unemployment (2001 statistics). In Surabaya the capital city of East Java with 3.5 million people, there are 100,000 poor people and 57,000 unemployed people.

Ø   Low level of skill of the poor community is still in existence

Ø   There is no access to

Ø   The presence of money lender which charge 10-20% interest permonth.

2. Objective

To provide sustainable financial services for the poor in order to enable them to enhance their welfare through a self-help approach

3. SPEKTRA has been running Micro Finance programme since 1995

Ø      Training for the poor on how to get access to capital from the banks

Ø      Training the poor on organizing their community

Ø      Providing fund up to the amount of Rp150 million for saving and credit

4. Action Plan

Ø      Reorientation of sustainable micro finance programme to the staff as well as beneficiaries.

Ø      Training programme for field staff by applying business approach method covering the subjects of credit analysis and micro finance financial analysis.

Ø      Training on organization management and financial management for people community.

Ø      Assisting the community in getting access to banks

Ø      Looking for other financial resources in order to improve micro finance services.

5. Action Plan










Reorientation Programme

  1. Staf

  2. Poor community








Spektra + donor


Micro Finance Training for staff






Spektra + donor


Training for the poor community








Providind access to financial resources (banks)









Seek for other financial resources






Spektra +donor

Bun Chanty

National Bank of Cambodia, Cambodia

As, I m working in The National Bank of Cambodia (Central Bank) as the authorized to the Micro finance in Cambodia. I just would like to inform you about the micro finance in Cambodia

The micro finance in Cambodia just start from 1993 at the end of the year 2001. there are over one hundred rural financial institutions, but most of them are very small. It have a few institution that cover for 84% of loan (36 musd) and 81% of saving (3 musd) like:

-  Acleda Specialized Bank

-  Two License Microfinance Institution

-  A few registration institution

The structure of microfinance

Cambodian rural financial institutions have adopted different outreach structure, but they mostly fall into one of following three model:

  1. The branch model
  2. The village bank modal
  3. The combination model

  1. The branch model

ACLEDA is only one in Cambodia that it have the most extension network,  including commercial bank Acleda operates in 15 province, and have 64 office

  1. Village bank/village association

This model usually consists in setting up by local structure at the village level with the support and sometimes direct participation of local authorities

  1. Combination model

It’s the model that combines a limited branch network with some form of village associations.

As the Asian Development Bank research, Cambodia need about 200 MUSD for micro credit, but at the end of year 2001, it have only 36 MUSD outreach to the rural area (about 400,000 families and 22% of total needed.

The National bank also issue some regulation for supervised te microfinance  institution such as:

    1. On the licensing on micro financial institution
    2. The calculation of interest rate on micro finance loan
    3. Bank capital guarantee
    4. Reserve requiment for micro finance institutions
    5. Liquidity rasio applicable to licensed micro finance institutions
    6. On registration and licensing of micro finance institutions.



Daisy Or

DEW Credit Co Operative Ltd, Singapore




Micro finance is an attractive tool to help low income households since it is widely seen as improving livelihoods, reducing vulnerability and processing social as well as economic empowerment.

Government and International organization in many developing countries are now carrying out microfinance operation.  According to the Micro Credit   Summit campaign Report  (2001) it was mentioned that of the estimated 1.2 billion people living in absolute poverty around the world, more than two – third are in Asia. There are 3500 member institutions in the Micro Credit Summit Campaign, of which nearly 1000 members are in the Asia Pacific Region. Of the 10-4 million poorest clients reported by the Asian Micro Credit Practitioner in 1999, 8.3 mio are women.

The four core themes of the summit campaign were reaching the poorest, reaching and empowering women, building financially self – sufficient institutions and ensuring a positive, measurable impact on the lives of clients and their families.

Micro finance was therefore evolved as an economic development approach intended to benefit the poor people and self employed activities. Micro financing has emerged as one of the strategies for income generation in Asian countries as well as worldwide AACCU (Association of Asian Confederation of Credit Union) is an example, using flexible guidelines and entrepreneurial spirit.

Banks, NGO, Credit Unions and Co-operative are the major forms of microfinance encompass the following features:

  1. Small loans, for both working, working capital and assets
  2. Collateral
  3. Access to repeat and larger loans
  4. Intensive supervision/close monitoring
  5. Secured savings product
  6. Extension of longer loan periods
  7. Options available for installments and
  8. Combination of social; development of social development with financial


Singapore, unlike many other countries in the Asia – Pacific region is an urbanized island with no agriculture. Co-operatives in Singapore do not have to deal with outgoing issues such as political patronage, member manipulation, collusion, etc. In order to sustain and continue the growth and people’s environment in the co-operative and the micro finance scheme’s, there will be greater competition amongst  providers. Competitive interest rates and better financial/social service would  ultimately benefit client/members.

DEW Credit Co-operative Ltd.

Established on 23 July 1981 with only 19 members as DEW (development of Economy of Women) Co-operative Credit Union. It was the vision of the late Mrs. Julie Pan who saw the need to introduce the concept of credit union to the Singapore women. Women in the late 70’s were making significant impact and contribution to the economy of the nation but had limited places to turn to for financial assistance as banks/finance companies do not consider women as viable economic entities. Hence, they had to borrow from tontines, club fund and unscrupulous loan sharks. Having attended the United Nations Mid decade for women in Copenhagen in 1980 and having heard about the marvelous work of credit unions in other parts of the free world. She set her mind to establish a co-operative with the purpose of helping women to Develop Themselves into Economically Independent Persons.

Thus, with a capital sum of S$ 190, a donation of S$ 300 from a generous member, a S$ 20 manual typewriter, DEW was inaugurated. From that small start, DEW has leapt into the 21st century to become a multi-million dollar concerns. More importantly, it has assisted many women in their studies, careers, businesses, family crises emergencies and even life threatening moment. In 1995 its name was changed to DEW Credit co-operative Ltd. to reflect the uniqueness of its organization. It is first a co-operative operating under the co-operatives principles and philosophy and then a financial organization offering credit to members.

The women of DEW see financial independence and continual personal self development as a springboard to total emancipation of women. In August 2000 women member decide to provide similar opportunities to the men associate members. As such, men can now avail themselves to the credit facilities and social activities offered by DEW. To date DEW has assisted more then 1,500 women and 30 associate members.

Members of DEW have benefited socially, economically, financially and spiritually. The professionals, homemakers and self employed account for 7% each whilst the rest are juniors or middle management position in the administrative sales, marketing, teaching and business professionals. Hence it can be seen that Micro financing in Singapore have been serving the following purposes

  1. Serve as a platform for exchange of experience
  2. Train women on business skill and management
  3. Provide market information
  4. Co-ordinate skill training for entrepreneurs
  5. Mountain qualify of products
  6. Link entrepreneurs to market
  7. Introduce marketing strategies

A. Objective of DEW


1. To continue to play an important role to improve the economic and social well being of all member by encouraging thrift by helping themselves to save regular

2. To build the financial strength, including adequate reserves and internal control that will ensure continued service to members

3. To promote education of the member along with the public in general in the economic, social, democratic and mutual self help principles.

4. To co-operate with other co-operative and their associations at national, regional and international levels in order to best serve the interests of their members and their communities.

5. To create a source for credit for the benefit of member at a fair and seasonable rate of interest for income generating project, housing improvements, education and consumption purposes.

6. To promote welfare and social active to society

7. To train members especially women to become entrepreneurs

8. To provide networking to these women to enable them to have access to micro financing and access to free business advisory services.

B.  Target Costumers: members both men/women from all walks of life, age above 18, not a bankrupt, must be Singaporean or PR and through recommendation. Orientation for before being approved as members.

C.  Approach: - Individual lending only

D. Credit handling look: - loan interviews, assessment on repayment capacity through financials, financial counseling, quotation, loan training, education, home visits and telephone conversations

E. Collaterals: - Personal guarantees from friends, family members, relatives, guarantee to open savings account with DEW or be members of DEW, deposits/savings NTWC default insurance policy.

F.  Repayment periods   :   1. From 1years to a max 4 years

                                    2. 5 years – Board approval required

G.  Loan Amount         :   1. First time – up to max of 3-month salary

                                    2. Repeat loans 6 months – max 8 months salary for excellent performers

H. Approval Authority  :   1. Delegate Authority as set by the Board of Directors

                                    2. Any amount about S$ 22,000 requires credit       committee (majority) approval

I.  Loan Monitoring      :   1. Daily follow up by reminder

                                    2. Follow up with house visits

                                    3. Interviews/counseling before disbursement of loan

                                    4. At credit committee level

                                    5. Supervisory audit

                                    6. Annual audit by external auditors

                                    7. Training of staff

                                    8. Credit manual policy

J. Committees in Co-operative   : 1.Education Committee – orientation meeting

                                            2. Investment Committee

                                            3. Credit Committee - monthly

                                            4. Board meeting – monthly or extradionary meeting for urgent matters

                                            5. Supervisory Committee

K. Incentives/Award               : 1. Good savings customer

                                            2. Good Borrowers

Existing Schemes/Activities in DEW to member

1. Financial Counseling/loan training

2. Budgeting for individuals/business & finance management

3. Loans types:

a.  Special Loans: education, renovation, debt settlements, working capital, equipment, purchase of assets, start up business, upgrading, and travel loan.

b.  Ordinary loans: schemed by cash, deposit or saving

4. Savings

a.   Compulsory   -   500 at time of joining as a member. Dividend paying    etc. only allowed to withdraw upon registration

                       -   Can be used as a loan for emergency/urgent cases

b.   Voluntary      -   Any amount, anytime

                       -   Savings of at least S$ 1.00 included in the installment  amount – act as cushion, and for emergencies

                       -   Interest earning. Have been payging at least 3% usually    higher than the Banks.

c. Time deposits  - Term of 1 year – Amount minimum S$ 1,000 max S$    100,000. international rate is higher than bank.

5. Training, workshops & seminars to the economic/social well being of members/public

6. Loans to lower income group without credit access

     - hawkers, loans to housewives and small business

7. collaborated with lady trainer provider 3R holidays for entrepreneurship training. How to start and run your own business

8. assist members who are retrenched/displaced to look for jobs.

9. Proposed Schemes (PS)/Projects in the Pipeline/Existing Project (EP)

I.  To work with interested countries in starting a pilot project on “how to start and run your own business” workshop and simulation course description of proposed scheme.

          This is in collaboration with 3R holidays. Lady training provides. 2 days workshop for a class of 30 people.

          This project is currently funded by our gout

          – Unemployed, housewife – 100% subsidized

           – Employed – 80% subsidized

           – Registration for S$20

II.     Enhance training an Micro financing/schemes from other countries coming to Singapore

          – Further develop training and skills, loan management and control

          – A follow up of this regional training


III.  Web-based credit co-operation system

               – 7 credits co-operations – sharing the NMC system

               – Better networking and monitoring loans

               – Interface of accounts in organization


IV. Business Advisory Committee/Group

     – Member from the co-operation as consultancy to new and existing business

V. Succession Planning for Credit Committee 

    – New ideas, from younger members

    – Better control and good for members to understand credit

     – As observers in credit committee meetings



Dao Mai Hoa

Vietnam Women’s Union, Vietnam


1.  In the Vietnam : the financial services are provided by 2 sector

                         -  the formal sector (banking system)

                         -  the informal sector (mass – organizations)

     The informal sector provide small loan size for the poor people, particularly in the rural areas, where the outreach of the formal sector remains limited

2.  The objective of the micro finance program in Vietnam

3.  Vietnam Women’s Union (VWU) is the biggest women’s organization in Vietnam, has undertaken a range of programs to mainstream women in the development process and empower them in various areas. Of which, economic empowerment is on a top priorities.

Since early 1990s, the operation of micro credit bye VWU has been widely

spread across Vietnam outreached many poor women in the rural.


1. The target groups      : Poor women in the rural area

2. Economic sector       : Agriculture, services, small enterprise

3.  Size of loan             : Small, fixed amount for every borrowers

4.  Non – collateral

5.  Interest Rate             : 1%/month (…)

6.  Monthly Repayment (Principal + Interest)

7.  Lending Scheme       : Group

8.  Transaction of loan disbursement and collection: excute in the group

     The software system manages these transactions in the base of each individual account

9.  Weakness

– Skills on mobilization of savings (need the training)

– Knowledge on loan investigation and analysis (need the training)

– Internal Audit (need the training)



1. The target group   : Poor women in the rural areas

2. Economic sector    : Agriculture, services, small enterprise

3. Size of loan                   : Depends on the purpose of loan are the ability of the borrower  to repay the loan (learned from BRI) concentrate on the small size

4. Non – collateral

5. Interest Rate                   : 1%/month (…)

6. Monthly installment (as current scheme)

7. Lending Scheme:

-   Group lending (as current)

-   Individual lending (learned from BRI)

-   Test the effect – evaluate – make recommendation – change the policy

8. Computerized the micro credit management system (as current)

9. The organization structure (learned from BRI and combined with the current structure)


(Manager: Marketing, Operational, Business Micro Manager Assistant manager…..Micro Banker Users)


                (Unit Manager, Credit Officers, Deskman)




Target group







-      Loan Investigation


-      Internal Audit


-      Saving Mobilization Skills


Branch, Unit Central

Branch, Unit Central

Branch, Unit










Abroad Vietnam

Abroad Vietnam


Central BRI


Central BRI










Group forming & loan investigation – analysis – Approval




Branch Unit



Operation & Management


9/02 – 3/03


Central Branch, Unit




Daw Po Po Ky

Myanmar National Committee for Women’s Affairs (MNCWA), Myanmar


I would like to mention briefly about the Action Plan.

First forward I would like to present you about Myanmar National Committee for Women’s Affairs (MNCWA). I am one of the members of MNCWA. It was established on 3rd July 1990, to systematically carry out the activities for the advancement of women. The main objective of this committee is to promote the advancement of women especially for those at the grass-root level.

MNCWA played a major role in enhancing women’s development by giving loan for micro enterprise activities. The sub – committee give small loans to women in rural areas without collateral.

Women are given small loan to small business for fruit preservation and tailoring.

In other words, loan are given for various micro enterprises to meet local needs.

The main objectives of micro credit scheme are to alleviate poverty, to empower and strengthen women in small business.

Now our Action Plan is this. Hence, the Action Plan will enhance the development of small enterprises in our country.  

Proposed Micro Credit Scheme which will are enhanced

1. Technical Assistance

2. Business loans for industry

3. Training











Technical Assistance








Business Loans









a.      sewing

b.      tailoring…..

c.      food preservation


















By: Gerry T. Lab-oyan, Philippines



A.  Background of Micro Finance Program


Ø     Cooperative Bank of Benguet (CBB) is a rural bank financial institution organized by cooperative societies in Benguet, Philippines, in 1992

Ø     CBB offers savings and small loans: small agriculture loans, small industrial loans, small commercial loans, petty traders/vendors loans, fixed salaried employees loan

Ø     In 1995, CBB offered micro finance service targeting indigenous poor women

Ø     The microfinance program is called Highland Micro Finance Program


B.  Objective of micro finance program


Ø     mobilize small savings from poor households

Ø     contribute to the establishment of family based micro enterprises

Ø     support the development or expansion of existing family based micro enterprises


C.  Brief description of existing micro credit scheme


The Highland Micro Finance Program of Cooperative Bank of Benguet has two schemes:


I    Center for Women Development Program

Ø       developed from Grameen Bank Model

Ø       group loan approach, women clients only

Ø       minimum 3 groups and maximum 6 groups at 5 members per group (15 members to 30 members)

Ø       7 days compulsory training

Ø       weekly meetings, weekly amortization o   no collateral

Ø       loan amount range from US$60-$160, 6-12 months term o   24% interest rate (flat) per annum


2.   Self-Help Group Development Program

Ø       targeted to existing informal self-help groups in the villages or communities

Ø       members per informal group usually ranges from 7 to 20 individuals, mostly dominated by women

Ø       group loan approach

Ø       basic requirement for loan access: started or with existing savings generation activity

Ø       weekly, bi-weekly or monthly meeting and amortization o   no collateral

Ø       I day orientation seminar

Ø       loan amount ranges from US$100-$200 per borrower, 4-6 months term

Ø       24% interest rate (flat) per annum


D. Proposed Enhancement of Micro Finance Program


Proposed activities

Time Frame

Resource Person/ Responsibility

1. Plan A: institution level



Presentation of lessons learned from training & brief features of BRI Unit operation to the Board of Directors


G.T. Lab-oyan

Drafting of policy on individual approach (modified KUPEDES)

Oct. - Nov

G.T.Lab-oyan and Board Committee

Subject draft policy for critiquing



Revision & finalization of draft policy


G.T.Lab-oyan & Board Committee

Presentation and adoption of the draft policy


Board Committee

Designing of training module



Training of staff                             



Pilot implementation                          



11. Plan B: Action Research Proposal

KUPEDES Model Replication & Pilot Implementation Research in North Luzon Philippines

Target: Rural banks and cooperative banks



Drafting of manual of operations of (modified) Kupedes Model

2-3 years period (2003-2005)

NAM CSSTC & BRI Coordinator (Philippines): G.T.Lab-oyan

Designing of training module


Conduct of orientation seminar to prospective institutions


Conduct of intensive training to interested institutions


Start of pilot implementation


Data gathering and monitoring


Annual implementation review


Data analysis, conclusion and recommendation


Presentation of results to MF practitioners and government policy body


Post research impact study





By: Gerry T. Lab-oyan, Philippines


Jeffrey R. Ordoiiez

People's Credit and Finance Corporation Philippines






The People's Credit and Finance Corporation (PCFC) is a state owned and controlled corporation mandated by law to be the lead entity for the development of the microfinance industry in the Philippines.


Created in September 1995 under an executive order of President Fidel V. Ramos, the PCFC was tasked to provide credit to the poor. In 1997, the Social Reform and Poverty Alleviation Act was passed by the Philippine Congress that mandated PCFC as the lead entity for microfinance.


The PCFC is basically a wholesaler of funds to microfinance institutions (MFIS) for relending to micro-entrepreneurs. It provides both investment credit (used for re-lending) and institutional credit (used for capability building) to Non-Government Organizations (NGOs), Cooperatives and Cooperative Bank, Rural Banks, Thrift Banks, and People's Organizations (POs).


As of July 2002, PCFC has a total of 199 active conduits (65 cooperatives, 31 NGOS, 2 lending investors, 23 cooperative banks, 73 rural banks, and 3 thrift banks) covering the three major islands of the Philippines (Luzon, Visayas, and Mindanao). Each MFI has an extensive network of branches and operation units covering around 90% of all towns in the Philippines    -


The PCFC has two major lending programs, the HIRAM (Helping Individuals Reach their Aspirations through Microcredit) Lending Program (HLP) and the Rural Micro Finance Project (RMFP) funded by the Asian Development Bank (ADB) and the International Fund for Agricultural Development (IFAD).


PCFC's target end-clients are Filipino families earning less than US $100 a month in rural areas and US $150 in urban areas. These families are granted a scaled up loans starting from $20 to $500.


Soon, PCFC shall begin granting loans to MFIs that shall be used to finance end-clients who have graduated from US $500 loans. Maximum amount of loans to be granted to individual borrowers shall be US $3,000. This shall be funded through loans obtained from the World Bank (WB) and the Spanish government.


Aside from lending to MFIS, PCFC also leads in the development of the microfinance industry in the Philippines. Aside from granting loans to MFIs for capability building, PCFC also provides technical assistance and trainings.


Technical assistance is given directly to MFIs through PCFC's Account Officers. While special trainings are conducted for MFIs either through PCFC Account Management Teams or through accredited training institutions. PCFC, with a grant from the Spanish government, also provides free trainings to MFIs to develop management capabilities and to enhance human resource programs and organizational systems.




PCFC's objective is to provide credit to poor Filipinos and to alleviate them from poverty. Its immediate objective is to serve a total of I million poor families by the end of 2004.


As of July 2002, PCFC has served a total of 659,140 poor families all over the Philippines.




Majority of PCFC conduit MFIs follow a modified Grameen Bank Approach (GBA), which is proven to be more suitable under the Philippine setting. GBA is most commonly implemented in the rural areas while individual lending is implemented in urban areas and centers of commerce of rural towns.


There is a clear segregation of market for both individual and group lending methodologies. Group lending using GBA is concentrated in serving rural folks in barangays (sub-districts). Loans start from as low as $20 - $120 and gradually increasing in each loan cycle depending on the borrower's repayment capacity. The loan is used to finance livelihood projects and micro businesses which may also include start-up businesses.


As for individual lending, the target market are the urban poor entrepreneurs and micro- enterprises found in the commercial districts of rural towns. Those who graduate from $500 loans and those who have transformed their livelihood projects into sustainable micro-enterprises may start borrowing individually from the MFIS.




The KUPEDES and SIN4PEDES/SIMASKOT schemes are interesting case studies for Philippine MFI'S. The loan and business evaluation procedures of KUPEDES and the savings generation schemes of Bank BRI may prove to be beneficial to Philippine MFIS. The schemes would complement PCFC's program that would finance individual borrowers and group loan graduates.


The following are therefore recommended:

1. Regular regional micro credit trainings and exposure to Bank BRI to allow the participation of key Philippine MFIs and to give them the opportunity to see first hand the best practices of Bank BRI.


2. Regular regional forums for the exchange of ideas and best practices in microfinance as well as a forum to discuss regional development concerns.


3. Exchange programs wherein MFIs and their regulating agencies may be able to study and see first hand the microfinance best practices of other countries. As for PCFC, such regional exposure shall enhance technical assistance provision to Philippine MFIS.


4. Training grants to PCFC Account Officers (AO) who are directly involved in the direction setting and provision of technical assistance to MFIs in the Philippines.


It will be beneficial for PCFC's AOs to review first hand the operating systems of Bank BRI and other successful MFIS. The review should focus on internal control systems, staff training and development programs, monitoring and management information systems aside from the lending and savings methodology.


Exposure to other successful MFIs in Asia and in Africa / Latin America (such as FIE/PRODEM/Banco Sol of Bolivia) and other similar organizations as PCFC servicing MFIs (such as NABARD or PTKF) would be beneficial as well.

Likewise, study grants for microfinance in Boulder, Colorado, USA would be highly beneficial.


Capability building is important for the success of any microfinance program. However, funding for such purpose is limited. Should NAM CSSTC consider these recommendations and sponsor such trainings/study and exposure, it would contribute greatly to the' development of microfinance in the Philippines and in the Asian region and other NAM member countries as well.




* Should there be future regional trainings / forums sponsored by NAM CSSTC, the NAM CSSTC may coordinate such events through PCFC who can provide a list of recommended Philippine MFIS.



Nisanard, Yothasmut

Krung Thai Bank

Community Bank


Krung Thai Bank (Public) Limited, as one of state-owned commercial banks, has an important role in taking part in supporting and promoting the development of community potential. KTB coordinates its efforts with cooperation of it’s business alliances. including state, private, non-government organizations (NGOs), and other independent organizations in building economic strength and capability of all community, which is an essential foundation of our national economic system. KTB has not only customers in both state and private sectors, but also skills and specialty in providing financial services for business sector. KTB, thus, has an ability to develop the coordinating system extending the revenue production process of comm4Tl!y to a complete circle that w effectively strengthen community foundation continuously from production through export. This is an important strong point of KTB that is different from other organizations working with community.


As a result,, KTB established its Community Banking in February 2002. This unit will support community financial services, especially funding, and also coordinate a development of knowledge in production,. management and marketing, etc., for community from various sources with cooperation from its business alliance organizations.


Credit Policy


Community Bank will give credit to community using following approaches.

Ø    Our target customers are community groups or community networks that are formed to make products or to conduct activities that produce benefits and revenue, and also that are sufficiently strong to prevent risk to business of customers and the bank.

Ø     Approach. There are two channels of approach, including;

1.   Mobile Unit Teams from KTB Community Bank that will travel to provide financial services in the fields.

2.   Credit Teams from KTB branches across the country that will provide financial services to customers in their areas. There will be an assessment of community needs to insure that credit is appropriately provided to meet the needs of community groups.

Ø     Credit Lending Tools. Community Bank has developed the Community Credit Scoring model to be used to analyze and assess community groups. The credit will be given to

Ø     community groups with lending interest as according to risk. Factors to be used for assessment include organization facts, management, production, marketing, and financial status of the community groups.


Ø     Approval Authority. In order to prudently and efficiently provide lending to successfully achieve the bank's policy, KTB has established the Community Credit Committee responsible for setting lending criteria, and controlling and screening loan according to those set criteria. The Committee has authority to approve lending credit of 50 Million Bahts. The Committee is also responsible for overseeing management of non-performing loans resulted from the lending.