Details

Case

Microfinance at Family Planning Association of Pakistan (B)

Naim Sipra

INDUSTRY : Microfinance

AREA : Finance

ORGANIZATION : Family Planning Association Of Pakistan

LENGTH : 47

LUMS No : 02-594-2002-1

PUBLICATION YEAR : 2002

KEYWORDS:

Microfinance,Family Planning,Association,Pakistan,FPAP,Institution,Financial Services

DESCRIPTION:

The Family Planning Association of Pakistan (FPAP) had initiated a poverty alleviation program involving the disbursement of small loans intended to assist the very poor. The primary purpose of such loans was to generate self-employment and improve the capacity to save. Microfinance, by definition, becomes a much more complex form of lending, given the absence of conventional instruments of evaluating lending opportunities. This case, dealing with the issue of microfinance, focuses on the nature of such financing, and predominantly on the issue of the credit policies needed to sustain a microfinance program. It highlights the difficulties involved by focusing on both the macro and the micro issues of such lending. The case can be taught in Financial Analysis, Commercial Banking and Commercial Credit.

LEARNING OBJECTIVES:

1) To present in detail a microfinance project which may be used by other NGO's for duplication. 2) To use the case as a vehicle to discuss the various issues of provding microfinance as a means of development. 3) To compare and contrast microfinance from traditional commercial lending by banks. 4) To compare traditional capital budgeting rules with rules for selection of projects at the micro-level. 5) To present a relatively simple example of forecasting that may be used to determine sustainability of a project.

SUBJECTS COVERED:

Finance