Developing a Housing Microfinance Product : The First Microfinance Bank's Experience in Afghanistan
The objective of this case study is to document an example of the successful design and implementation of housing micronance (HMF) products by analyzing the approach taken by the First Micronance Bank of Afghanistan (FMFB-A) from 2009 to 2013. This...
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| Format: | Report |
| Language: | English en_US |
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International Finance Corporation, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/228301487151938414/Developing-a-housing-microfinance-product-the-first-microfinance-banks-experience-in-Afghanistan http://hdl.handle.net/10986/26123 |
| Summary: | The objective of this case study is to
document an example of the successful design and
implementation of housing micronance (HMF) products by
analyzing the approach taken by the First Micronance Bank of
Afghanistan (FMFB-A) from 2009 to 2013. This report aims to
encourage other lenders to follow suit and offer
housing-related loans to low-income earners. It is part of
IFC’s MENA Micronance Knowledge Management project, which
aims to raise awareness among micronanceinstitutions (MFIs)
about the importance of risk management, product
development, and transformation. FMFB-A was established in
2003 with the mission to reduce poverty and promote nancial
inclusion by providing its clients with access to nancial
services. Shareholders of FMFB-A are the Aga Khan Agency for
Micronance (AKAM), Aga Khan Foundation USA, the German
Development Bank (KfW), and the International Finance
Corporation (IFC). FMFB-A has a nation-widepresence in
Afghanistan and serves over 53,000 clients with an
outstanding portfolio of 64.5 million dollars. Housing nance
accounts for about 17 percent of its total portfolio.
FMFB-Ais currently the only MFI in Afghanistan that offers a
housing micronance product. FMFB-A implemented a rigorous,
albeit exible, approach to the roll-out of its HMF products
in Afghanistan. The idea to develop an HMF product at FMFB-A
started in 2007 as a response to client demand. Its aim has
been to increase access to housing micronance for
Afghanistan’s low-income households in urban and rural
areas. It also sought to improve the quality of housing for
this segment by offering construction technical assistance
(CTA) services. |
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