Social Impact Assessment of Microfinance Programmes - weman

expenditure and to see that conditions for different products are being met. An external
auditor also audits the branches annually.
3.1.5.9 Portfolio Performance
Asasah has excellent credit performance with a repayment rate of 100 percent and a PAR
at 30 days of zero percent. This puts them head and shoulders above the industry average
of 3.2 percent. The loans are written off in the accounts at 90 days, however, they are not
taken off from the individual branch’s accounts. Asasah has a strict policy of zero
tolerance on delinquency. The head office receives daily reports from branches about any
repayment issues, which are immediately followed up by the head office and concerned
branch staff.
The portfolio geographical diversification is increasing as Asasah is expanding and
presently they are working in 9 districts. Portfolio diversification in terms of the different
businesses Asasah lends for is given in Figure 3.2 and is fairly diversified.
Figure 3.2
Distribution of Loans by Sector
5% 6%
1% 13%
45%
30%
Agriculture Manufacturing Services
Trade and Commerce Handicrafts Dairy
3.1.6 Financial Management
3.1.6.1 Funding Mobilization:
For its operations, Asasah has obtained loan funds from a combination of eight
commercial and donor organizations. Funding details are attached in the Appendix. At
the end of each year, Asasah sends its business plan for the next year to all of their
funding partners. The donors then pledge the amount of money they are willing to invest
for the coming year. The commercial investors provide funds at an interest of 10-13
percent and the donors at 8-10 percent. The current breakdown of funding is given in
Figure 3.3.
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