Berendina Micro Finance Institute Partners with NDB

3 October 2012
source: http://www.dailynews.lk/2012/10/03/bus15.asp

Berendina Microfinance Institute (BMI), has initiated a new funding partnership with the National Development Bank recently. This has been the first borrowing which BMI had obtained from any commercial bank to finance its loan portfolio.

BMI initiated negotiations with the NDB in April 2012. During this period, NBD conducted an assessment study by visiting the BMI Head Office and having discussions with the Board of Directors and Senior Manages. BMI would be using this loan to finance the 4th cycle of business development loans, which include loans or new business ventures and enhancement of present business activities.

Chairman Dulan de Silva and Director Anura Atapattu endorsed the offer on behalf of BMI in July 2012 at the NDB head office. The loan amount Rs. 10 Million obtained under this facility with a repayment period of five years, in catered through a special loan scheme for small and medium enterprises.

BMI has started its operations in 2007, with the provision of credit services to the rural and plantation communities. During past 5 years, BMI has successfully obtained significant growth and client coverage in terms of depth and spread of outreach without drifting from the original mission of poverty reduction and providing prosperous living condition for the low income segment of the population. Currently, BMI implements its services in five districts, namely Anuradhapura, Kandy, Kegalle, Nuwara Eliya and Trincomalee, through its 17 branches.

BMI has made a strong impact on Microfinance activity by opening its branches in remote areas such as Serunuwera, Thambalgama and Kahatagasdigaya. It made significant progress on its borrowers and improving their businesses by providing training in business skills like marketing, account management, costing and also skills improvement trainings in a range of fields. BMI is the first MFI to provide loans to plantation workers through the plantation cooperatives managed by plantation companies. As of end July, 2012 there are 2095 clusters with 47,742 active borrowers and an outstanding loan portfolio of Rs. 954,417,532.

Tags: agriculture financing for small holders., Berendina Microfinance Institute, economic growth, Entrepreneurship, ENTREPRENEURSHIP DEVELOPMENT, MICRO, Poverty Alleviation, SMALL AND MEDIUM SCALE ENTERPRISE, small business, women's banking