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: 141 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

Click to view Price Analysis Tool

Institution	# Borrowers	Portfolio (US$)	Products	Age of Data
KBL	468,300	120,082,000	16	112
KF	233,600	41,416,000	4	111
NRSP	399,900	70,157,000	3	112
ASA	230,400	29,637,000	3	112
TMFB	221,200	85,449,000	7	112
FMFB	163,544	38,481,323	9	130
TRDP	100,000	13,817,000	3	112
PRSP	75,656	9,907,176	3	130
BRAC^P	57,300	11,869,000	3	112
SRSO	51,100	7,775,000	3	112
SSF	46,000	4,776,000	3	112
FINCA	82,000	43,559,000	9	112
JWS	36,000	6,545,000	2	112
RCDS	35,552	4,856,122	4	130
DAMEN	35,185	7,150,864	1	130
FFO	22,400	3,335,000	3	112
OLP	21,400	3,510,000	3	112
CSC	17,600	3,147,000	1	112
AMRDO	13,800	1,206,000	5	112
WMBL	13,800	6,105,000	3	112
Mojaz	13,400	2,415,000	2	112
SDF	11,500	1,041,000	4	112
POMFB	8,500	2,795,000	4	112
OPD	7,500	918,000	2	112
AGAHE	7,300	797,000	2	112
NRDP	6,184	1,521,972	3	130
GBTI	6,100	669,000	3	130
WASIL	4,300	1,135,000	2	112
Micro Options	4,000	768,000	5	112
VDO	3,900	489,000	3	130
SVDP	3,900	811,000	13	130
SRDO	3,500	766,000	4	112
OSDI	2,000	923,000	3	112
APMBL	1,800	1,401,000	3	112
BEDF	1,400	209,000	3	130
KCDO	800	94,000	1	130

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
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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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