Helping the under-privileged sectors uplift their status is always a noble deed as what has been highlighted in the Microfinance Development Fund’s (MDF) project, “Promoting Microfinance in Bayan-Ulgii”. This project targets the low income families (poverty level) who have strong interest and desire of starting a family business and improve their standard of living.
Teaming up with “Kajarat”, a non-bank financial institution based in Ulgii, Bayan Ulgii province, MDF provides interest free loans to those interested families to start their own small businesses in the area, using the principles of Islamic Banking as this will be expected to be highly-favored considering the predominantly Muslim population (93%) in the province.
To ensure the success of their small businesses, MDF and Kajarat assist the qualified loan borrowers in their business planning, production and sales as well as in financing reporting and accounting. In addition, MDF and Kajarat help the borrowers in identifying risks associated with their businesses by effectively cooperating with state agencies, and professional associations and also working together with experts in the field.
The expected result of this project is the significant improvement in the living standards of over 300 families and around 2,000 family members. Additionally, this project will enable them to form a continuous source of income which will eventually reduce poverty in the province.
MDF’s “Promoting Microfinance in Bayan-Ulgii” won the 2017 ADFIAP’s Outstanding Development Project Award, under the Financial Inclusion category.