Market Research
After the donor hand over, the MDF was given more freedom in targeting clients. In order to learn the real market needs (that are not on donor driven basis), MDF conducted the market research by engagement of the microfinance experienced consultant from Kenya.
As a result of the market research as well as extensive cost and financial analyses, MDF differentiated its existing products as well as introduced some new loan products for implementation as of beginning of 2006.
Credit Program
In order to obtain the loan, you simply have to:
• Call or visit one of our offices in your town. Talk to our Loan
Officer.
• Fill in the Application form and collect the necessary documentation
for loan approval.
• Our Loan Officers are going to help you in application procedure
and provide business advice.
• After loan approval by the Credit Committee, you will receive a
loan in cash at the Commercial Bank in a short period.
The Micro-credit program has been specifically designed to economically empower and improve the living standard of the persons with the business ideas.
It is enough for you to have a solid business idea in the area of agriculture, manufacturing, services, crafts and commerce, and the MDF Loan Officers will offer support and assistance in developing a business plan.
MDF Micro-credits are specially adapted to the entrepreneurs who do not have an access to Commercial banks. The applicants who are unemployed or farmers could apply indeed.
Beside a simple procedure, it is especially significant that with the micro-credits you have the possibility to develop your business with repeated loans with ever lower interest rates.
All entrepreneurs who wish to invest in a new or already existing business activity, unemployed who want to start up their business and farmers can apply for the loan.
Loans are granted for business purpose i.e. for buying fixed assets or working capital either to start a new or expand the existing business.
Loans are granted and repaid in dinars, at the official buying exchange rate of EUR in Commercial Bank.
Loan Products
Micro-classic
For Start-up entrepreneurs, agricultural workers, entrepreneurs who have unregistered businesses, entrepreneurs whose businesses are registered no longer than 6 months, employees supplementing their income, open market sales.
Methodology: Individual
1. Loans are approved to:
- Starting up new business
- For current businesses,
Loans are approved progressively:
| Cycles |
Amount ( € ) |
Repayment period (months) |
I |
200-2 000 |
6-18 |
II |
200-3 000 |
Do 24 |
III |
200-4 000 |
Do 24 |
IV |
200-5 000 |
Do 24 |
2. The 1st repayment is due one month after receipt of funds.
3. Repayments are on a monthly basis.
Loan repayment is assured by collateral and commonly used collaterals
are:
- Promissory note signed by two endorses and
- At least two administrative bans or promissory note of a legal entity.
Loan processing fee is 2%.
For loans from ICRC fund, repeat loan amount is up to 2,500 €.
Our ex product Micro-Bonus are automatically transferred to the Micro-classic
with maximum amount of 5 000 € and 24 months repayment period depending
on the loan cycle.
Micro-enterpreneur
Target group: Entrepreneurs with businesses registered 6 months or longer.
1. Methodology: Individual
2. Loans are approved for:
- Business development, registered 6 months or longer.
3. Loan amount:
- Minimum 500 €
- Maximum 5000 €
4. Repayment period: 6-24 months
5. The 1st repayment is due one month after disbursement.
6. Repayments are on a monthly basis.
7. Loan repayment is assured by collateral and commonly used collaterals
are:
- For amounts up to 3,000 € promissory note signed by two endorsers,
promissory note of a legal entity, minimum two administrative bans
or promissory note of a legal entity.
- For amounts over 3,000 €, promissory note signed by three endorsers,
promissory note of a legal entity, three administrative bans or promissory
note of a legal entity.
Loan processing fee is 2%.
Micro-home
Target group: Internally displaced people from Kosovo, who are in need to solve their housing problem by reconstructing a house or flat.
1. Methodology: Individual
2. Loans are approved for:
- Building materials purchase
- Costs of hiring qualified workers for adaptation
- Buying already existing property ( a house or flat) that need reparation.
3. Loan amount: 200 - 4 000 €
4. Repayment period: Up to 48 months
5. The 1st repayment one month after disbursement.
6. Repayments are on a monthly basis.
7. Loan repayment is assured by collateral and commonly used collaterals
are:
- Promissory note signed by two-three endorsers, promissory note of
a legal entity, administrative bans on salary, or promissory note
of a legal entity / mortgage.
Loan processing fee is 2%.
Micro-parcel
Loan conditions are as for micro-classic.
Operational Performance
|
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
2001 |
| No.Of Active Clients | 2196 |
2136 |
2378 |
2289 |
1685 |
968 |
615 |
| Women Clients % | 47% |
45% |
42% |
41% |
40% |
40% |
41% |
| No. Of Disbursed Loans | 1651 |
1869 |
2277 |
2105 |
1620 |
815 |
640 |
| Outstanding Portfolio (€) | 2,642,301.30 |
2,282,089.30 |
2,031,838 |
1,720,585 |
1,406,532 |
761,058 |
587,835 |
| Average Loan Size (€) | 1,808.0000 |
1,591.0000 |
1,319.00 |
1,023.00 |
962.00 |
820.00 |
846.00 |
| Average Loan Term (Months) | 21 |
17 |
14 |
14 |
14 |
13 |
12 |
| Value Of Active Loans Per Loan Officer (€) | 240.209.00 |
207.463.00 |
184,713.00 |
156,417.00 |
119,209.00 |
65,352.42 |
58,266.00 |
| No.Of Active Loans Per Loan Officer | 200 |
194 |
216 |
218 |
155 |
82 |
88 |
Our Successful Clients
Miroslav
Spasic - Having lost his job in a cable factory in Jagodina, he
took the severance pay from his work and a loan from MDF and invested
the money in a second hand plane in order to start up his own business.
Today, he has his own production of fences, protection bars for boutiques
and shops, flower holders. His fences are of high quality and esthetic
appeal. He plans to employ more workers and extend the business soon.
Dragan
Janjic - a refugee from Croatia is a real example of gradual success
supported by the MDF loans. He is in the fourth MDF loan cycle. From
a simple, improvised car service he made a modern garage, employing
two more people. By his diligent work and professionalism he acquired
a great reputation in the local community, and is going to extend
the business, buying a nearby land for the parking lot.
Sanja
Lazic Mihajlovic - an energetic, young woman,
who fled from Kosovo in ’99, has developed a family business in Krusevac.
She owned a kiosk in the centre of the town and used MDF’s loan to
extend the assortment of the products and extensively expand the scope
of business. In this family business, Sanja’s husband is also engaged
and they plan to enlarge their capital and employ more people in the
near future.
Marinela
Ilic - an IDP, young and gifted woman, didn’t lose her hope after
she had arrived from Kosovo to Leskovac. She finished a hairdresser’s
course within the MDF Vocational Training. After receiving the in-kind
grant consisted of essential hairdressing tool, she managed to equip
a shop and start up business. Recently, she has modernized the hairdresser’s
shop by taking a loan from MDF. With her creativity and unique style
she is attracting more and more customers every day. Moreover, Marinela
is a supporter of her mother and two sisters, after their father has
been killed in Kosovo.
