by the MicroCapital Team -

SPECIAL REPORT: Registering Property, Charging Up to 3% Monthly Interest, Promoting Local Currency for Housing Loans at European Microfinance Week

At European Microfinance Week 2017the session titled “Building an Enabling Environment for Low-Income Housing Finance,” R V Verma, former Chairman of the National Housing Bank (NHB) (India) and consultant to the World Bank Group, said that “pushing the formal financial system to reach out to the informal sector [presents] a lot of challenges, but also huge opportunities. As part of financial inclusion, housing microfinance has a very important role.” Mr Verma went on to describe the market in India, which has an outstanding mortgage balance of INR 13 trillion (USD 200 billion) but a shortage of 24 million housing units. He also explained efforts to mitigate risk for housing lenders – both credit risk and issues with land title. Among the tools in use is a central registry of outstanding property loans. Mortgage insurance is also available even to informal workers – when lenders are willing to issue them loans.

Adedeji Adesemoye of the Central Bank of Nigeria described his institution’s efforts to address Nigeria’s shortage of 17 million housing units via resources including a loan package of USD 300 million awarded by the World Bank’s International Development Association (IDA) in 2012. While much of this package was for refinancing mortgages, USD 15 million of it was earmarked for housing microfinance. That portion was disbursed to nine microfinance institutions to test lending to existing (non-housing) clients for land acquisition, incremental construction and

by Aleksandr Marceau -

MICROFINANCE PUBLICATION ROUND-UP: Digital Wallets for Illiterate Customers in India, Agency Banking in Africa, Gender Equality in Financial Services

“Digital Wallet Adoption for the Oral Segment in India: Concept Development for MoWo (Mobile Wallet for Oral);” by Brett Hudson Matthews, Richa Valechha, Vivek Anand, Avantika Kushwaha, Saborni Poddar and Rachit Ohri; published by MicroSave; May 2017; 50 pages, available at:

http://www.microsave.net/files/pdf/DWA_Research_Concept_Development_for_MoWO.pdf

The authors describe a project conducted during 2016 in India on the Mobile Wallet for Oral (MoWo), a mobile-money service designed for the “oral” market segment, which includes 264 million people in the country who have low reading-skill levels. A group of 310 participants from various communities were subjected to “signing, reading and numeracy” tests. Thereafter, 138 people of varying literacy levels participated in focus groups on the user interface of the mobile wallet. Finally, 29 participants performed usability testing.

by the MicroCapital Team -

MICROCAPITAL BRIEF: C-Quadrat’s Dual Return Vision Microfinance Funds Lend $31m to MFIs in Asia, Latin America

C-Quadrat Asset Management, an arm of Austrian fund manager C-Quadrat, recently informed MicroCapital that its Dual Return Vision Microfinance funds lent a total approximately equivalent to USD 31 million to unidentified microfinance institutions (MFIs) in five Asian countries, Bangladesh, Cambodia, India, Kyrgyzstan and Pakistan, as well as three Latin American countries, Ecuador, Mexico and

by the MicroCapital Team -

MICROCAPITAL BRIEF: MFIs in Asia, Central America Borrow $10m from C-Quadrat’s Dual Return Vision Microfinance Funds

C-Quadrat Asset Management, an arm of Austrian fund manager C-Quadrat, recently informed MicroCapital that its Dual Return Vision Microfinance funds lent a total approximately equivalent to USD 10 million to unidentified microfinance institutions (MFIs) in Guatemala, India, Kazakhstan, Nicaragua and

by Matthew ONeill -

MICROFINANCE PUBLICATION ROUND-UP: Offshore Financial Centers for Impact Investing; Financial Inclusion in 2025; Microfinance in India

“Offshore Financial Centers for Financial Inclusion: A Marriage of Convenience;” by Sam Mendelson and Daniel Rozas; published by the Center for Financial Inclusion (CFI) at Accion; June 2017; 14 pages; available at:
http://www.centerforfinancialinclusion.org/publications-a-resources/browse-publications/865-offshore-financial-centers-for-financial-inclusion

This paper explores the use of offshore financial centers (OFCs) based on interviews with 13 equity impact investors.

by Sascha Strobl -

MICROCAPITAL BRIEF: IFC Planning Credit Bureau in Myanmar, Investing $13.5m in Fullerton Finance, Accion’s Early Dawn Microfinance, Maha Agriculture

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced it will loan a total of USD 13.5 million and provide related advisory services to three microfinance institutions in Myanmar.

by Christian Chartier -

MICROCAPITAL BRIEF: Asian Development Bank (ADB) Places $10m Equity Investment in Satin Creditcare Network to Support Microfinance for Women in Rural India

The Asian Development Bank (ADB), a Philippines-based multilateral institution, recently made an equity investment of USD 10 million in Satin Creditcare Network Limited, a for-profit Indian microfinance institution (MFI). The funding will be used to “expand and broaden” the institution’s services for unserved

by Phoebe Rorke -

MICROCAPITAL BRIEF: India’s Microfinance Institutions Network (MFIN) Launches Financial Literacy App in 5 Languages

The Microfinance Institutions Network (MFIN), a self-regulatory organization of 53 Indian microfinance and non-banking financial institutions, recently launched a financial literacy app in English, Hindi, Marathi, Tamil and Telugu. The app offers users their credit histories, interest rates, payment cycles

by Phoebe Rorke -

MICROCAPITAL BRIEF: FMO Lending $3m to Philippines’ Microfinance Institution One Puhunan

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced that it will disburse a loan of USD 3 million from the Dutch government’s MASSIF Fund to the Microfinance Philippines Financing Company, which is also known as One Puhunan. The microfinance institution

by Phoebe Rorke -

MICROCAPITAL BRIEF: IFC Syndicates $44m in Debt from BIB, Incofin, MicroVest, Symbiotics for KazMicroFinance (KMF) of Kazakhstan

KazMicroFinance (KMF), a microfinance institution operating in Kazakhstan, recently borrowed USD 44 million syndicated by the World Bank Group’s International Finance Corporation (IFC) in an effort to enable KMF to expand its lending to small businesses. Of the total, IFC is providing USD 5 million

by the MicroCapital Team -

MICROCAPITAL BRIEF: C-Quadrat’s Dual Return Vision Microfinance Funds Loan $63m to Various MFIs

Austria’s C-Quadrat Asset Management informed MicroCapital today that its Dual Return Vision Microfinance and Dual Return Vision Microfinance-Local Currency funds loaned a total approximately equivalent to USD 63.5 million during December to unspecified microfinance institutions (MFIs) in countries including Ghana, Indonesia, Kenya, Mongolia and Sri Lanka. The

by Michelle Dold -

MICROFINANCE PUBLICATION ROUND-UP: Lessons on IPOs from Indian MFIs; Growth In Impact Investing; 10-Year Survey of Microfinance Investment Vehicles

“How to IPO Successfully and Responsibly: Lessons From Indian Financial Inclusion Institutions”; by Anna Kanze; published by the Center for Financial Inclusion (CFI) at Accion; Fall 2016; 25 pages; available at: http://www.centerforfinancialinclusion.org/storage/documents/How_to_IPO_Final.pdf

This report draws upon two recent initial public offerings (IPOs) in the financial inclusion industry – those of Equitas and Ujjivan, both microfinance lenders in India – to make the case that institutions can use IPOs to strengthen their capital base while remaining committed to their social missions.

by the MicroCapital Team -

MICROCAPITAL BRIEF: C-Quadrat’s Dual Return Vision Microfinance Funds Loan $22m in Burkina Faso, China, Colombia, El Salvador, Paraguay, Sri Lanka

Austria’s C-Quadrat Asset Management informed MicroCapital today that its Dual Return Vision Microfinance and Dual Return Vision Microfinance-Local Currency funds loaned a total approximately equivalent to USD 22 million during November to unspecified microfinance institutions (MFIs) in

by Michelle Dold -

MICROCAPITAL BRIEF: Intellegrow, Symbiotics Launch SME Debt Pool Program by Securitizing $5.3m Bond Issuance Benefiting Indian Entrepreneurs

Intellegrow, an India-based subsidiary of Intellecap Group specializing in venture debt, and Symbiotics, a Switzerland-based firm investing in smaller companies, recently launched a small and medium-sized enterprise (SME) debt pool program, benefiting Indian entrepreneurs from “impact” sectors including, but not limited to, food and agriculture, healthcare, and waste management.

by Sharanya Madhavan -

MICROCAPITAL BRIEF: India’s Kotak Mahindra Bank Buying BSS Microfinance for $21m

Kotak Mahindra Bank (KMB), a private-sector Indian bank, recently announced plans to acquire BSS Microfinance, a Karnataka-based non-banking financial company run by the Bharatha Swamukthi Samsthe (BSS) Trust, for INR 1.4 billion (USD 21 million)