Microfinance Department (M.F.D)-CTN
HISTORICAL BACKGROUND
CTN’s microfinance programme has developed and grown out of the most eminent and development oriented youths, one of the renowned universities (Ernest Bai Koroma University of Science and Technology- EBKUST), beset by unique restrictions on enterprise, trade and human development. It first began operations in April 2019, providing credit to small and medium-scale business owners with an initial capital fund of not less than USD 50 to clients.
The department’s aim is to improve the quality of
life of small business owners and poor households through the provision of
credit and other financial services that reduce poverty, economically empower
women and youths and provide income-generating and asset-building opportunities
to the community and other proximate poor and marginal groups.
The department strives to provide scalable interventions with measurable
macroeconomic impact by concentrating its financial services on poorer urban/rural
areas.
Many people operate small businesses on the margins of the formal economy which include vegetable stallholders, petty traders etc.
The vast majority are unable to secure affordable credit from banks. Yet if provided with such loans they do not have the ability to repay them, while generating sustainable incomes for themselves, as well as their families, many of whom are drawn from the poorest segments of society. The department’s work is to help close this circle of opportunity and help households become self-reliant.
The department also aims at supporting human
development more broadly, by sustaining household consumption and family
investments in education and health. Ultimately, we seek to empower people, and
in this respect particularly targets women and youth, as well as other
economically and socially vulnerable groups.
We carry out our mission in accordance with those standards and best practices
that have been developed by the organization.
At the core of our service model, it is understood that microcredit and related financial services should be sustainable. This means that we aim to recoup our operating expenses, while charging rates of interest that are not only affordable to our clients but also competitive to other microfinance providers.
In this context we strive to make our outreach and operations as cost-effective as possible.
Accordingly, we focus our work on poor, urban/rural areas, which are both centres of commercial and industrial activity and host a high concentration of people.
FUNDING AND EVALUATION
Since April 2019, the department is running its operations on a self-sustaining fund basis.
The department’s operations are subject to independent in-house audits as well as annual ratings.
It has also increased its status by improving transparency, quality and reliability of its performance.
To this end, the department is constantly developing and improving its performance and knowledge management and business planning systems within the microfinance context in which it works.
DEVELOPMENT OF OUTREACH
The department has a range of microfinance products
and services in order to address the interlocking needs of the target
communities.
Initially focused on individual small businesses in the early years of the
programme, the department soon expand its remit to include micro enterprises and
employees of all categories.
Meanwhile, however, the department will also continue to improve and broaden its outreach to smaller borrowers. As part of its wider effort to provide comprehensive financial intermediation to the poor.
PRODUCTS AND SERVICES
We
offer the following:
EMERGENCY
SOFT LOAN (ESL)
Targets individual monthly workers and
overwhelming businesses, most of whom there is no access to formal credit and
are vulnerable to shocks. The loan range from USD 100 to USD 500, with a monthly
repayment plan. This is designed to help such individuals build up and maintain
reserves of short-term working capital.
Small
Scale Enterprise Loan (SCEL -Business loan)
The
department offers minimal amount of loan directly aimed at sustaining smaller
businesses. It ranges from USD 50 to USD 100 for a start, repayment falls
between 2 to 3 months, and these loans typically support capital investment and
market expansion.
Small & Medium Enterprise
Training (SMET)
The department stands to offers training programme for business people and support individual
persons wanting to start their own business, by offering customized training
in areas such as purchases and sales ,income and expenditure ventures etc.
Participants are giving the right opportunity to interact focusing the
discussion on sustainable business skills/ideas.
ONLINE LOAN APPLICATION FORM
For official use only!
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