| |
Vision
Ensure sustainable livelihoods for low income Afghans.
Mission
Enable low-income Afghan households to improve their economic status through sustainable access to financial services.
Goal
Emerge as market leader in providing microfinance services to low-income households
|
|
Background
Microfinance Agency for Development and Rehabilitation of Afghan Communities (MADRAC) was established by the Danish Committee for Aid to Afghan Refugee (DACAAR), with financial support of Microfinance Investment Support Facility Afghanistan (MISFA) through Ministry of Rural Rehabilitation and Development (MRRD) in June 2005.
MADRAC started its operation in June 2005 with a clear vision, mission, goals, and objectives reflected in its five years business plan. Having its Head Office in Kabul, and is operating in 20 districts of 8 Provinces in eastern, western and central Afghanistan, providing financial services to more than 17,000 clients through its 13 branches, targeting both men women (39 % of its clients are women).
MADRAC had its operation under DACAAR for almost two years, first as a small project under the rural development program (RDP) and later on as Microfinance Program. It was formally separated from DACAAR and transformed to a specialized Microfinance Institution (MFI) in April 2007 and was then registered with the Afghanistan Investment Support Agency (AISA) in July 2007. Since then operating as independent MFIs, works relentlessly to reduce poverty and introduce positive changes in the poor’s lives. MADRAC has its own board of directors and management.
The overall aim of MADRAC is to uplift the livelihoods of its clients through improved and sustainable access to financial services. |
|
| Managing Director Speech |
|
| What is New |
| |
|
| |
|
| Clients Success Story |
| |
|
|
|
|
| |
|
Products
General Group Loan
GGL is a multi purpose and collateral free loan offered to individual members of the group where the group members guarantee each other. The loan terms ranges between 8-12 months and the loan size ranges between AFN 10,000-35,000 in different cycles. Separate groups of men and women are formed ranging from 5 to 20 members.
Only two members of the same family (one male and one female) can receive loans.
Small Enterprise Loan
SEL is a multipurpose, partially collateralized loan, offered to individual clients who want to expand their existing businesses or start a new one having the right skills and experience to do so. The loan term is 12 months and the loan size ranges between AFN 30,000 to 150,000 depending on the size, profitability and cash flow analysis of the business as well as cycle of the loan.
Murabeha (Sharia Compliant Product)
This is a Sharia compliant product where the requested assets are provided to clients instead of cash. The client repays the amount (price of asset plus mark up) in 12 monthly equal instalments. The product has been approved by the Supreme Court of Afghanistan and a Fetwa was issued to MADRAC. Murabaha has been well accepted by clients especially in rural areas.
MADRAC is only the second MFI in Afghanistan providing microfinance services through a Sharia compliant product. MADRAC is currently providing microfinance services to almost 20 percent of its clients through Murabaha. This percentage will increase in the coming years.
MADRAC plans to replicate this product in all its branches as an option to its clients. The product was launched in January 2007 and was piloted for one year
compulsory saving
MADRAC offers only compulsory saving product which aims to develop the saving habits of members. The size ranges, between AFN 50-300 per month per client, depending on size, cycle and type of loans. |
|
