Malawi Rural Development Fund - Group Loan - MFTransparency.org Truth In Lending Tables

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Institution

Malawi Rural Development Fund Head OfficeLilongwePO Box 779

Data approved: 2012-11-25

Data version: 2

Age of data: 143 months

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Product

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Product Details

Key Statistics

Outstanding portfolio (MWK)	MWK 994,727,000
Portfolio (USD)	USD 2,550,582.05
Active Clients with Loans	166,575
Approximate % Female Clients	40% - 60%
Approximate % Urban Clients	0% - 20%

Methodology

Individual
Solidarity group	x
Village banking
Self help group
Other

Description

These group loans are given to both rural and urban folks. It is required that women are included in each group.

Loan Purpose

Any purpose
Income generation	x
Mortgage/housing
Consumer loan
Agriculture
Education
Other household finance
Other
Other (2)

Included Services

Credit education	x
Group meetings	x
Credit insurance	x
Workplace visits	x
Business training	x
Other training	x
Other	Group Dynamics
Other (2)
No other services

Eligibility

Men	x
Women	x
Must run a business	x
Must own a home or land
Must be a salaried worker
Must be specific age group
Other
Other (2)

# Borrowers by Product

Portfolio Size by Product

Geographic Coverage

# Regions for this institution	24
# Regions for this product	28
Regions Active	Dedza, Dowa, Kasungu, Lilongwe, Mchinji, Nkhotakota, Ntcheu, Ntchisi, Salima, ChitipaKaronga, Likoma, Mzimba, Nkhata Bay, Rumphi, Balaka, Blantyre, Chikwawa, Chiradzulu, MachingaMangochi, Mulanje, Mwanza, Nsanje, Thyolo, Phalombe, Zomba, Neno

Loan Conditions

Loan Amount

Currency	MWK
Minimum loan size	MWK 150,000
Maximum loan size	500,000

Distribution at Disbursement (Est.)

Loans less than MWK 50,000	0
MWK 50,000-150,000	0
MWK 150,000-250,000	20%
MWK 250,000-350,000	30%
MWK 350,000-450,000	30%
Greater than MWK 450,000	30%

Loan Term and Grace Period

Shortest loan term	6.0 months
Longest loan term	18.0 months
Approx average	12.0 months

Distribution at Disbursement (Est.)

Loans 3 months or less	0
Between 4 and 6 months	0
Between 7 and 9 months	0
Between 10 and 12 months	50%
Between 13 and 18 months	50%
Longer than 18 months	0

Grace Period

Grace period usage	100%
Average grace period	1.0 month

Repayment Frequency

Daily
Weekly
Every 2 weeks
Every 4 weeks
Monthly	x
Every 2 months
Quarterly
Every 6 months
Every 12 months
Single end payment
Irregular payments

Pricing Information

Interest

Lowest quoted nominal interest	28.00%
Highest quoted nominal interest	28.00%
Interest rate period	Yearly
Interest Rate Calculation Method	Decl Bal
Subsidized by funder request?	No
Is rate fixed for entire loan term	No

Upfront Fees

	Fee 1
Description	Loan Processing Fee
% of loan amount - min	2.40%
% of loan amount - max	2.40%
OR, Fixed amount - min	0
Fixed amount - max	0
Reason for variation	N/A
Appears on Repayment Sched?	Yes

Ongoing Fees

This product has no ongoing fees

Upfront Insurance Fees

	Ins 1
Description	Life Insurance
% of loan amount - min	0.50%
% of loan amount - max	0.50%
OR, Fixed amount - min	0
Fixed amount - max	0
Reason for variation	N/A
Appears on Repayment Sched?	Yes

Ongoing Insurance Fees

This product has no ongoing insurance fees

Compulsory Deposit

Required for	Never
Criteria	N/A
Is deposit indicated on the repayment schedule?	N/A
Do borrowers control deposit in their group?	N/A

Deposit BEFORE or AT Disbursement

% loan amount deposited	N/A
or, Fixed-amount deposited	N/A

Deposits DURING period payments

% loan amount deposited	N/A
or, Fixed-amount deposited	N/A
Conditions on access to deposit	N/A

Interest Paid on Deposit

Minimum interest rate paid	N/A
Maximum interest rate paid	N/A
Interest payment frequency	N/A

Taxes

Are taxes charged on this product?	No

Are taxes charged on this product?

Full Pricing Data

Group Loan samples

	Sample 1	Sample 2	Sample 3	Sample 4
Loan Amount	MWK 144,110	MWK 300,000	MWK 112,700	MWK 500,000
Loan Cycle (1, 2, 3, etc)	1	1	Not Known	Not Known
Disbursement Date	2012-05-30	2012-02-29	2012-08-23	2012-07-03
Loan Term (Months)	24.0 months	15.0 months	24.0 months	16.0 months
Grace Period (Months)	0.0 months	2.9 months	-0.7 months	4.0 months
Total Cost of Credit	MWK 48,075.19	MWK 65,076	MWK 36,556.30	MWK 115,540
True Price by Comp
Interest price component	26.6%	22.4%	27.7%	21.4%
Fee Component	2.5%	3.2%	2.8%	2.9%
Insurance Component	0.6%	0.6%	0.6%	0.6%
Tax Component	0.0%	0.0%	0.0%	0.0%
Deposit Component	0.0%	0.0%	0.0%	0.0%
Full APR (int fee ins tax dep)	29.7%	26.2%	31.1%	24.9%
Transparency Index	94	100	90	100

Original Repayment Schedule	PDF	PDF	PDF	PDF
MFT Pricing Calculation	PDF	PDF	PDF	PDF

Group Loan Price Graphs

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Key Statistics
# Samples:
# Products
# Institutions
# Countries
# Borrowers
Loan Portfolio (USD)
% Products using declining balance
% Products with one or more fee
% Products with one or more insurances
% Products with compulsory deposits

	X Axis
	Greater than:
	Less or equal to:
N (# of Samples)
Total Borrrowers of Samples


Avg
Min
Max
Std Dev

By Inst Type


By Country

	X Axis
	Greater than:
	Less or equal to:
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Institution

Product

Product Details

Key Statistics

Methodology

Description

Loan Purpose

Included Services

Eligibility

# Borrowers by Product

Portfolio Size by Product

Geographic Coverage

Loan Conditions

Loan Amount

Distribution at Disbursement (Est.)

Loan Term and Grace Period

Distribution at Disbursement (Est.)

Grace Period

Repayment Frequency

Pricing Information

Interest

Upfront Fees

Ongoing Fees

Upfront Insurance Fees

Ongoing Insurance Fees

Compulsory Deposit

Deposit BEFORE or AT Disbursement

Deposits DURING period payments

Interest Paid on Deposit

Taxes

Full Pricing Data

Group Loan samples

Group Loan Price Graphs

Total Borrowers of Samples

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