Afghan - Canadian Micro Finance Bank
Fatihi Abdul
105
H2X 1V4
Business plan
Plan
1 - Presentation of the
project
1.1
Summary of the project
1.2
1.3 Products and services
1.4 General objectives
1.5 Legal form of the company
2 - Organizational structure
of association.
2.1 Promoters - Members
2.2 Direction - Decisions
2.3 Distribution of ownership - Capital
3 -
Presentation of the offer
3.1 Personal loans
3.1.1 Conditions of granting
3.1.2
Characteristics of the loan
3.1.3
Operation
3.1.4
Refunding
3.2 Save
4 - Definition of the Market
4.1
Total market
4.2 Target market
4.4 Positioning of ACMCB
4.4.1
Presence
4.4.2
Strategy
5 - Services
6 - Financial resources
1.
Presentation of the project
1.1
Summary of the project
To bring
assistance to the underprivileged Afghan populations.
1.2
From this point of view
Micro Afghan-Canadian association Finances Bank seeks and joined together
financial resources which it will distribute in the form of appropriations to
poorest, in particular with the women, thus allowing them to work and increase
their incomes to leave the extreme poverty.
Afghan-Canadian Micro Finances
Bank makes it possible to make the credit more accessible to the people with low
income, by providing
a fast and simple access to small short-term loans, at very low rates, in order
to enable them to have a minimum capital for launching or developing productive
activities.
Afghan-Canadian Micro
Finances Bank will engage, within the limits of its possibilities any action
necessary to the optimum use of these loans and will propose small remunerated
placements.
1.3 Offered products:
1. Small personal loans of
short duration, at an interest rate as low as possible.
These loans will be provided
to micro contractors having insufficient resources to start or develop a
gainful employment.
Those will have to be member
of a group of solidarity. The loans will be granted individually but each
member of the group of solidarity beforehand made up will be personally
responsible and debtor for the total amount of the loans provided to the group.
The methods of refunding of the loan will be laid down in agreement
with the borrower and will take account of the nature of its activity.
2. By way of test and for a number limited people (5 maximum ) a service of saving remunerated at market’s rate.
1.4 General objectives
In the short run:
·
To double the number of the voluntary members which is today of six
people.
·
To find 5000 CAD of additional funds.
·
To diversify the sources of financing by investing 20% of our
capital in a gainful employment.
·
To increase the number of authorized loans
·
To diversify the offers of loans (longer term loans)
·
To establish a partnership with the local banks.
·
To establish a partnership with other organizations of micro credit
and fight against poverty.
With medium term:
·
To develop a service of saving.
·
Widen the mission of Afghan-Canadian Microphone Finances Bank with
any action necessary to the improvement of the living conditions and the
increase in the incomes of poorest: formation, assistance with management,
loans of materials, collective loans.
·
To ensure the viability and the durability of the company and to
lead it towards autonomy.
1.5 Legal form.
Association with non-lucrative goal Afghan-Canadian Microphone
Finances Bank is made up:
- Voluntary members, not
remunerated, who commit themselves contributing by supply of services and gifts to the correct
operation of the grouping and the achievement of his objectives.
- Members of right:
1. Operative on the ground,
whose expenses will be completely refunded and who will be compensated for
their time employed with the realization for the actions necessary to operation
for the micro credit.
2. The customers who become
members of the association of the fact even of the delivery of a loan.
1.6 Calendar of the pre-starting
achievements.
|
Pre-starting achievements |
Date |
|
To find a person in charge for the operations in |
|
|
To collect economic and
banking data |
|
|
To write a project |
|
|
To constitute association |
|
|
To inform and collect the
opinion of the person in charge in |
|
|
To make known the
existence of the project of micro credit in the sector delimited in |
|
|
To bring together the
interested people to expose the project to them. To collect their opinion. |
|
|
To adapt the Micro credit project
consequently and to write the final regulation of the loans. |
|
|
Contacts with the local
banks for opening of an account and possible placements. |
|
|
Meeting of the potential
borrowers, presentation of the final document and constitution of groups of
solidarity and setting in project of the plans of company |
|
|
Presentation of the groups
made up and the plans. |
|
|
Dialogue on the level of
association, adjustments and agreements |
|
|
To convey the funds in |
|
|
Meetings of the groups and
last developed at the point |
|
|
Starting of the loans |
|
2
Organizational structure of
the company
2.1 Promoters - Members
The promoter of this
association, contractor himself, Officials the management of company and has a
good knowledge of the banking mechanisms and micro credit whose it studied many
cases. He speaks and writes Persian, knows the Afghan company and
The local person in charge
for association is native of
The members of this
association all are motivated by their interest for
Each voluntary member will
have to monthly pour a contribution of 10 CAD or 100 AFA or 7 EUR and to commit
himself to cooperate with the activity of the association, taking part to the
extent of his abilities with the increase in amount of the funds to lend.
Each operative on the ground
is member of right of association.
Each borrower is also rightful
member of association and will remain it if he fulfills his obligations, he
will be able thus to deliver his opinion on the activity of ACMCB and to
contribute to its operation.
2.2 Direction - Decisions
The association is directed
by its promoter who takes the title of President, assisted by a Treasurer and a
Secretary.
Each member can make
proposals concerning the operation of association and the services which it
provides.
The decisions are made in
last by the president after consultation of the board of directors.
This one is composed of the
founder members.
Each year a balance sheet
and an assessment of the activity of ACMFB will be established by the treasurer
and the representative of the association in
FLOW CHART OF ASSOCIATION
2.1
Distribution of ownership - Capital
Poured by givers and
increased progressively, it has as a function to be lent according to methods
specified hereafter. The association is sole owner. In the event of departure
of one of the members the versed sum will remain property of association. In
the event of dissolution of association the capital will be distributed between
the recipients of the loans in progress, failing this it will be allocated to
the president who will lay out about it with his own way.
The amount of the capital of
ACMCB will be at least of 4000 CAD.
3.
Presentation of the offer
3.1 Personal loans
3.1.1.
Conditions of granting
The lending by ACMCB is subjected to the following conditions:
·
To be in an extreme situation of poverty
·
To belong to a group of solidarity
·
To agree to refund the borrowed sum plus the interest
·
to engage with being guaranteeing interdependent of the loan of its
group
·
To present a coherent project of business
·
personal Conditions
A) Situation of precariousness
This situation can be
defined as the insufficiency of the means necessary to the satisfaction of the
needs essential with a decent life.
The borrowers are thus poor
people that the weakness of their incomes, generally lower than 1 USD per day
led to the permanent research of the cover of their vital needs and who fault
of finding a financing adequate in the traditional banks cannot practice a
lucrative profession. The loans will have to open this possibility to them and to
enable them to improve their financial standing until arriving at a level of
acceptable income.
B) Membership of solidarity
The borrowers must
obligatorily belong to a group says group of solidarity.
The representative of
ACMCB will propose to people of a zone defined by him, preferably near to his
centers of interests to set up formed groups from 3 to 6 people who will
mutually stand as guarantors of the financial obligations contracted by the
delivery of a loan.
These groups will be freely
made up according to affinities' of each one. It is however desirable that the
members of the same group exert or project to carry on different activities and
that the groups are relatively homogeneous as for the needs for financing of
the various members.
C) Engagement of refunding
of the loan and payment of the interests.
Each saver will have, in
writing, to recognize:
-
to have received the sum of XX afghans, lent by ACMCB for one
duration of X month to the interest rate of X% per month and to commit themselves
refunding this matched sum of the interests is a rising total of X afghans in Y
payments of an amount of X afghansis, payable the DDMMYYYY
and DDMMYYYY etc? .
-
To be jointly guaranteed, for any absence or delay of refunding, by
the members of his group of solidarity made up of ??????
and ???????? who engage in
the event of delay or of non-payment to pay its debt in its places and places.
-
To accept that the sanction of any failure of its share is the
final exclusion of any later possibility of credit.
This document will be signed
by the borrower and his joint and several guarantees.
D) Engagement of guarantee
Each borrower of the
group must agree to jointly guarantee the loans of all the members of his
group. I.e. that if a member of its group refuses or cannot ensure a refunding
are the other members of the group who will have to do it in his place and this
until complete refunding of the totality of the loan.
E) Presentation of a
coherent project
The future borrower must have a serious project, proportioned with
the borrowed sum and having the best chances to withdraw sufficient benefit
from them to increase his standard of living and to refund his loan.
He will have to provide
information allowing the members of his group and the person in charge for
ACMCB to judge some. A list of the information essential to provide will be
drawn up by our care, filled by the customer with the assistance of our person
in charge and communicated to the President.
It would be desirable that
the person in charge for ACMCB can meet the future borrower in his residence
and on his place of work present or future in order to better know his
conditions of existence and his needs.
F) Personal Conditions
The future borrower must
have reached 18 years the minimum age.
He will have to be able to
justify of a fixed residence.
3.1.2.
Characteristics of the loan
A) Amount
The amount of the loans does
not comprise minima.
The maxima amounts of the
loans are fixed as follows:
|
LOAN |
CAD |
AFA |
EUR |
|
1 ER |
150 |
4637,9 |
95,8 |
|
2ND |
500 |
15457,4 |
319,5 |
|
3RD AND FOLLOWING |
1000 |
30912 |
638,9 |
B) Duration
The minimum duration of the
loan is fixed at one week.
The maximum duration of the loans is fixed as follows:
|
LOAN |
MAXIMUM DURATION |
|
1th |
2 MONTHS conditional with
the project |
|
2ND |
6 MONTHS |
|
3RD AND FOLLOWING |
12 MONTHS |
C) Interest
rate
|
LOAN |
MONTHLY RATE |
ANNUAL RATE |
|
1 th
|
1 % |
12.683 % |
|
2ND and following |
0.5 % |
6.163 % |
D) Use of the lent sums.
The lent sums will have IMPERATIVELY to be used in the
creation or the development of a generating activity of incomes. To this end it
will be requested from the future recipient to present a description of its
situation present, activity which it wants to launch (standard questionnaire)
and resources that he hopes to withdraw.
During the loan it will have
periodically to inform the person in charge for the evolution of his business.
Given that each borrower
makes party of a group which jointly guaranteed the refunding of the loans,
each project will be studied and approved by all the members of the group.
During the loan they will be informed of the results of the company.
3.1.3.
Operation
When the composition of the
groups and the projects to be financed are accepted by the local representative
of association and the president, each borrower will determine in collaboration
with his group and the representative of ACMCB the methods optimum of amount,
duration, delivery and refunding of his loan.
The project thus finalized
will be definitively accepted by the president of ACMCB
After agreement on the
conditions of the loan between the lender and the borrower materialized by
their signings of a trust deed taking again all the procedures and conditions
of the credit, the signature by the borrower of the engagement mentioned to the
3.1.1 C), the borrower will receive the amount of the borrowed sum. He will
sign the receipt of it.
Each borrower will have
weekly to present the assessment of his activity and his financial standing at
the representative of association.
3.1.4.
Refunding
The methods of refunding
will be established according to the constraints particular to each saver and
the activity which it will have undertaken.
However we recommend refunding
frequent and thus less heavy preferably every week.
These refunding will be all
the same going up and their periodicity will not be able to in no case to
exceed the month.
They will be boxed by the
representative of ACMCB on the places of work of the borrower failing this in
the buildings of association.
Except case of absolute
necessity noted, any delay or omission will be sanctioned as it is known as to
the 3.1.1. C)
3.2 Save
A simple system of saving will be set up on an experimental basis
for a number limited to 5 people chosen among our borrowers.
It will be a question of enabling them to deposit the sums saved on
the open deposit account in the name of association and to thus profit from the
interest been useful by the bank in proportion to the amount of their saving.
The transactions will be done via association.
4
- Definition of the Market
4.1
Total market
The economic and social situation of
<< With an average life expectancy of approximately 40 years,
a death rate of 25,7% in the children of less than five years and a rate of
illiteracy of 64%, Afghanistan is classified among the countries of the world
the most exhausted by the wars and most badly parceled out in terms of human
development.
According to estimates', 70% of the Afghans suffer from
malnutrition and only 13% have access to drinking water.
"According to the majority of the
criteria, the situation of
On 187 countries, seven only have a life expectancy lower than that
of
With less than one third of the
children provided education for in 1999,
Because of the non-availability of estimates of its income per
capita,
UNDP - Program of the United Nations for the Development - October
2001
4.2 Target market
They are the poorest people who do not lay out obviously, for lack
of guarantees of possibilities of access to the credit.
Among those we will aim primarily the women and particularly the
widows.
4.3 Positioning of ACMCB
Our geographical presence is
ensured by our representative in Kabul Mr. Safi Ollah, which will be regularly
in telephone contact, Email or fax with the members of the council.
It will be given the responsibility
to make known the existence association ACMCB, of our activity and our offers
of loans, while speaking about it around him and in organizing a briefing in
its district.
Initially association will
have domiciled at Safi Ollah in
5 - Services
In order to accompany and to
optimize the use of the loans, ACMCB will propose before any granting of
credit, the relative obligatory meetings of formation:
-
with the knowledge of the market
-
with the choice of the activity
-
with the creation appropriateness of companies
-
with the elementary principles of management
-
with the operation of the loans offered by ACMCB
-
with the mechanism of the guarantee interdependent of the group.
In a more general context of fight against poverty and can be in
relation to public organizations or ONG:
-
courses of elimination of illiteracy
-
courses of management and accountancy
-
medical formations: prevention of the diseases, balances food,
mother and infant welfare, vaccinations
6 - Financial
resources
6.1 Financing
Starting
gift:
Fatihi 1000$
to 3000$
Francoise Saby 2500$
Ginette 100$
Monthly
gift
Fatihi 50$ to
100$
Francoise Saby 100$
Isabelle Rozon 10$
Hamid Raymanyar 10$
Vedran Cvjetkovic 10$
Ginette 10$
Total now
Total 4100$
The financial resources of association rest on the contributions of
its members and the gifts.
Our efforts will relate to
the search for givers, on partnerships with other organizations of micro
credit, the banks, Planet Finance, the caritatifs
organizations, associations, the governments.
We would like in the long
term to interest of the investors and to convince them of the benefits of the
micro credit.
We hope to derive some
advantages of the current campaigns in favor of the micro credit which try to
sensitize the institutional decision makers with this form of assistance.
These resources however
hypothetical, random and are limited, consequently, to diversify and supplement
our financing, it is planned to place a fraction of the capital of ACMCB in
lucrative projects, preferably in an Afghan business. The whole of the
placements will not have to in any case to exceed the limit of 20% such
indicated to item 1.4 of the capital of association. The withdrawn benefit of
these operations will be completely reinvested in our activity of fight against
poverty.
6.2 Management of risks
Theft risk
The association will be
responsible to support up to the competition of 1000$ the projects on standby
of financing. It will cancel the remainder of its engagements for an
unspecified duration.
Risk bankruptcy among borrowers
The association
distributes the sum on the whole group in which the borrower is. In if
necessary, the association covers the loss by monthly gifts of its members.
Risk non-payment
The bad credit is an imminent risk. The association will put a indirect and calculated pressure on the entrepreneur
by intermediary of members of his group, will propose methods of payments
adapted to the need for the borrower. With the case falling due, it will
register the name of the person on her black list.
6.3 Start-up expenses
Opening of an account in
Wages of the officer project
in
Communication with the
person in charge 30$/ 3
months
Office supplies 5$
Room 0$
Impression of the
reports/ratios, the contracts 3$/
3 months
Sending postal 12/ 3 months
Gift with the mosques where
the meetings 2$ /time * 10 is
organized
Total spends for three first
months 620$
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