- Microfinance banks are promoting financial inclusion for women, SMEs, poverty alleviation growth
There are presently 11 microfinance banks operating in Pakistan, regulated by the State Bank of Pakistan. These institutions play a vital role in providing financial services to low-income individuals, small entrepreneurs, and rural communities. Some of the notable microfinance banks in Pakistan include:
– Advans Pakistan Mi crofinance Bank Ltd
– APNA Microfinance Bank Limited
– FINCA Microfinance Bank Limited
– HBL Microfinance Bank Limited
– Khushhali Microfinance Bank Limited
– Mobilink Microfinance Bank Limited
– NRSP Microfinance Bank Limited
– Pak Oman Microfinance Bank Limited
– Sindh Microfinance Bank Limited
– Telenor Microfinance Bank Limited
– U Microfinance Bank Limited
Microfinance banks in Pakistan are doing some amazing work in promoting financial inclusion, especially for women and SMEs. These institutions are making a significant impact on poverty alleviation and economic growth.
Advans Pakistan Microfinance Bank
Advans Pakistan Microfinance Bank is a leading microfinance institution in Pakistan, established in 2012 to promote financial inclusion, especially among micro, small, and medium-sized enterprises (MSMEs). They are part of the Advans Group, which operates in nine countries across Africa and Asia. They have 2 million active borrowers, 46% of which are female and a Gross Loan Portfolio (GLP) of PKR 565 Billion. Their key services include loans ranging from PKR 10,000 to PKR 150,000 for MSMEs and focus on digital banking to enhance financial inclusion. Recently, they have been acquired by MNT-Halan and have collaborations with organizations like Avanza to improve services.
Apna Microfinance Bank
Apna Microfinance Bank is a leading microfinance institution in Pakistan, established in 2003 and listed on the Pakistan Stock Exchange. They focus on providing financial services to the poor and underserved segments of society, including women and micro-entrepreneurs in rural areas. Their key services include microfinance loans for farmers, livestock, agriculture, and house loans, tractor loans, and salary loans. Presently, they are operating with a network of 111 branches across Pakistan with total assets worth PKR 17.4 billion and deposits worth PKR 25.6 billion.
FINCA Microfinance Bank
FINCA Microfinance Bank is a leading financial institution in Pakistan, part of the global FINCA network, operating in 108 cities across the country. They offer a range of services, including competitive saving products, such as Niswan Rozana Munafa, Asaan Account, and Sahulat Current Account, various loan products for individuals and businesses, including Kashtkar Karza, Maweshi Karza, and Sunheri Karza and digital financial services like FINCA Pay etc. FINCA Microfinance Bank has a strong focus on financial inclusion, especially for women and micro-entrepreneurs. They have collaborated with organizations like Karandaaz to advance women’s financial inclusion in Pakistan.
HBL Microfinance Bank
HBL Microfinance Bank is a leading player in Pakistan’s microfinance sector, established in 2001 and listed on the Pakistan Stock Exchange. They are part of the HBL Group, one of Pakistan’s largest banks. Their key services include loans for individuals, farmers, and micro-entrepreneurs, savings accounts for individuals and MSMEs, digital and Shariah compliant services.
Khushhali Microfinance Bank
Khushhali Microfinance Bank is a leading microfinance institution in Pakistan, established in 2000 to promote financial inclusion, especially among low-income individuals and micro-entrepreneurs. They offer a range of services, including loans for individuals, farmers, and micro-entrepreneurs, with amounts ranging from PKR 50,000 to PKR 5 million. Khushhali Microfinance Bank is also involved in various initiatives, such as the Mera Ghar Mera Ashiana Scheme, which provides affordable housing loans to low- and middle-income households. They have a network of over 1,000 locations across Pakistan and have served over 468,369 active clients with loans.
Mobilink Microfinance Bank
Mobilink Microfinance Bank is making waves in Pakistan’s financial sector. They have recently launched their Islamic banking operations, offering Shariah-compliant services to cater to the growing demand. This move is expected to increase financial inclusion, especially for small businesses and underserved communities. The bank has also partnered with the Small and Medium Enterprises Development Authority (SMEDA) to provide loans and business development services to micro-enterprises, aiming to empower small businesses and drive economic growth. Additionally, Mobilink Bank has received a $20 million investment from VEON Group to support its digital Islamic banking expansion and enhance financial inclusion. This investment will help scale their MSME financing portfolio and accelerate their transition into a technology-driven, digitally native bank.
NRSP Microfinance Bank
NRSP Microfinance Bank is a leading microfinance institution in Pakistan, established in 2011, focusing on rural, agricultural markets across the country. They offer a range of services, including group loans, agricultural loans, women empowerment group loans, and individual loans like Kissan Zarrai Taraqiati loan and livestock individual loans. They also offer credit life insurance and other insurance products. NRSP Microfinance Bank has 133 branches and has reached 500,000 borrowers, with a focus on providing financial services to rural communities.
Pak Oman Microfinance Bank
Pak Oman Microfinance Bank, now known as LOLC Microfinance Bank, offers various financial services to support micro-entrepreneurs, small businesses, and individuals. Some of their key products are Micro Enterprise Loans, Karobar Loans, Agri Bullet Loans and Salary Loans. The bank has a network of 21 branches across Pakistan and has served over 8,529 active clients with loans.
Sindh Microfinance Bank
Sindh Microfinance Bank (SMFB) is a leading microfinance institution in Pakistan, established in 2015 as a wholly-owned subsidiary of Sindh Bank. They focus on providing financial services to low-income households, especially women entrepreneurs, in rural and urban areas. Their key offerings include group lending products for women entrepreneurs (Sujag Aurat Loan), Karobar Loans for small trade/service organizations, partnerships, and sole proprietorships and agri loans for livestock, fisheries and agriculture. Their key achievements are:
– Profitable from the first year of operations
– 100% women loan clientele
– Over 80% rural financing
– More than 100,000 loans disbursed, exceeding PKR 2.5 billion
Telenor Microfinance Bank
Telenor Microfinance Bank, now known as Easypaisa Bank Limited, is a leading microfinance institution in Pakistan, focusing on financial inclusion, especially for low-income individuals and micro-entrepreneurs. They offer various services including loans, digital banking and insurance products. The bank has a network of 171 branches and over 75,000 agents across Pakistan, serving over 4.9 million depositors and 336,000 active borrowers. They’ve partnered with Ericsson to enhance their digital financial services and promote financial inclusion.
U Microfinance Bank (U Bank)
U Microfinance Bank (U Bank) is a leading microfinance institution in Pakistan, established in 2001 and listed on the Pakistan Stock Exchange. They focus on providing financial services to low-income individuals, micro-entrepreneurs, and SMEs. They offer key services like loans, savings accounts, digital banking and Shariah compliant services. U Bank has a vast network of branches across Pakistan and has served over 1.5 million clients. They are known for their innovative products and customer-centric approach.