Pride Microfinance Ltd (PML)
Mission: PML’s mission is to provide financial services to micro, small, medium and upscale entrepreneurs in rural and urban areas, though sustainable operations that promote social and economic growth of our customers.
Decent Work Area:
Vulnerability, risk management and overindebtedness
Innovation:
PRIDE Microfinance Ltd. Introduced a new microleasing product, the Mortgage and Asset Financing Loan (MAFL), to purchase productive assets like land, vehicles, equipment etc. The leasing product was to minimise risks resulting from diversion of loan funds into non-productive assets. The investment in productive assets should also help clients to boost business, increase income and reduce repayment challenges and risk of over-indebtedness.
Results:
Due to substantial differences in TG and CG client characteristics an econometrical analysis could not be undertaken. Instead, the below results originate from a Before-After-Analysis.
Strongest results for clients who had accessed the asset financing product.
Increased their assets, especially land (by 12%), vehicles and motor cycles (by 14%);
Could better cover their business (increase from 31 to 60%) and household (increase from 47 to 66%) expenses over time;
Had slightly more difficulties repaying their loans (increase from 8 to 12%);
Had slightly more unforeseen expenses but slightly increased ability to cover them; and
Had similar financial attitudes and behavior compared to clients without access to the MAFL.
