Kashf Foundation

Kashf (means miracle or revelation) starts its operations since 1996 as an action research program. Roshaneh zafar the founder and president of kashf gets the inspiration from Muhammad Youns of Grameen bank in 1993. It was the first micro finance institute in Pakistan that achieve financial sustainability and also the 1st institute that obtain an investment grade credit rating.

Mission: There mission is to eliminate poverty as well as empowering women by providing them cost
effective microfinance service in order to enhance their economic role and decision making power.

Goals:
Improve access and scale of microfinance service by empowering women Continuous innovations in client driven products and services To strengthen customer care Sustain their financial position by providing services to poor

Kashf partners:
Acumen Fund, CGAP, DFID, Grameen Foundation, PPAF, Shore bank, Pakistan Micro finance Network, however their core funding comes from PPAF, DFID and Agha Khan Foundation.

Branch Network:
In 2007, kashf foundation was having 139 branches that operate in 22 different districts in two provinces of Pakistan. However, they expand their network in 2008 and they were having more than 160 branches operating in 25 different districts.

Kashf Products/services:
Features Kashf General loan Kashf Home Kashf Improvement Emergency Loan Loan Financial services whenever wherever Improve living standard 15000 to 75000 Kashf credit for life Insurance Kashf Health Insurance Planning for healthier future In-patient coverage to loan 350 per person per annum Kashf Business Sarmya Loan Grow your business with kashf To Generate Income

Purpose of Loan Amount per Loan

More economic opportunities 10000 to 20000

Consumption Loan insurance Rs. 4000 1.5% of loan size

Period of Repayment

A person can It depends on repay the amount of Amount loan within 9 months.

A person can repay the Amount within 6 months.

Its range is from Rs. 6000 to Rs. 50000 It depends It depends A person on amount on amount can repay of loan of loan the amount with in 1 year

Service Charges

None

Bank charges 8% for its loan Twelve installments

Bank charges 10% for its loan 6 installments if paying monthly or 12 if paying fortnightly The client must be an active member of kashf business sarmaya loan

None

None

Three No. Of Installments installments

Upfront payments

Upfront payments

Eligibility criteria

None

The household income should be Rs. 2000 to Rs. 8000

The client must be an active member of kashf business sarmaya loan

The client must be an active member of kashf business sarmaya loan

Bank charges 20% for its loan. 12 installments if paying monthly or 24 if paying fortnightly The household income should be Rs. 3000 to Rs. 10,000

Kashf Microfinance Bank Limited

KMBL is full service microfinance bank which was established by Kashf Foundation. The SBP issues the license of operations to KMBL on 27, October 2008. KMBL is offering a diverse range of financial products/services like lending, deposit, savings, loans, remittances, ATM network etc. In 2008 KMBL signed an agreement that they will begin setting up savings kiosks at different Kashf Foundation branches. The purpose is that low income households can conveniently save at these kiosks after opening saving accounts with KMBL. Their plan is to reach out more than one million savers and 350000 borrowers by opening 100 nationwide branches up to 2012.

Mission: Their mission is to offer full range of financial services to small entrepreneur especially to
women and to maximize value of all stake holders.

Funding: Kashf gets 51% of its equity from kashf holdings and remaining from 4 international investors
that include International Finance Cooperation, Shorecap international limited, WWB Microfinance equity funds, Triodos Fair Share Funds. KMBL is following institutional approach.

Branch Network:
KMBL is currently operating in 25 major cities with 31 branches and 5 service centers. These cities start from Mansehra in N.W.F.P to Karachi. They serve more than 80000 depositors and 17000 micro business borrowers.

Lending products:
Kashf Kamyab Karobari Karza: is the 1st product of KMBL. The basic purpose of this loan is to meet the working capital requirements only. The maximum loan size is Rs. 150000. The interest charged on loan is 20%. The average household income must be from 3000 to 10000 rupees.

Deposit products:
Kashf Ahtimad Bachat Account: This product is basically designed to increase saving habits of low income group so that they can get some amount of profit on it. However, profit is to be paid only on balances which are greater than Rs. 25000. Features: Initial deposit requirement to open this account is only Rs. 100. There is no account opening charges. There are no minimum balance requirements. Its a profit bearing checking account.

Kashf Sahulat Account: It is basically a non-interest bearing account for businesses. Features: Initial deposit requirement to open this account is only Rs. 100. There is no account opening charges. There are no minimum balance requirements. Kashf Tahaffuz Term Deposit: Kashf offers term deposit with different levels ranging from 3 to 6 months tenure and profit may be payable on monthly, quarterly, biannually or yearly basis. Features: Minimum investment required is Rs. 5000. There is no account opening and closing charges. There are no minimum balance requirements. Its a reward program.

Kashf Kamal Committee: Its a saving goal oriented account for different occasions like marriage, old age benefits, education, transportation, hajj, umra etc. It has the same features as kashf Tahaffuz Term Deposit account. Kashf Winspiration Institutional Term Deposit: The account balance is divided into three levels. The product has a tenure ranging from 1 to 36 months. Features: Minimum investment required is Rs. 100000. There is no account opening and closing charges. There is a need for relationship manager for each account.

Leased Finance scheme:

KMBL has recently launched a lease finance scheme for motor bike in order to facilitate the low income individuals and families so that they can have their own conveyance.

hPLUSTM
KMBL has developed hPLUSTM , the worlds best java banking system by using sybare ASE. The team that has developed hPLUSTM believes that it is a significant aspect of architecture. hPLUSTM is a solution that focuses on online transaction process. The operational risk is reduced through decision support. System wide Features: Discrepancies will be eliminated because of immediate execution of all transactions. There will be no time consumption end-of-day. There is Real time inter branch reconciliation. Benefits of hPLUSTM : Treasury and trading system becomes easy. Easy management of profitability, asset and liability The management system becomes integrated.

Conclusion:
Since its establishment kashf achieves a lot of national and international awards. Moreover, they are providing vocational training services in collaboration with TEVTA and a lot of their flood reliefs projects are running in different locations of Pakistan. Although they are doing a great job however, they need to improve on many areas. In my opinion they must reduce their interest rate for karobari karza as 20% for a poor is too much amount or they must provide interest free loans. In addition to this they must provide educational loans to students so that they can easily carry on their studies. They must start a program to educate people how they can get access to financial services in order to improve their living standards. The products they are offering are fine but they must expand their outreach in Pakistan.