Mojaz focuses on progressively sustainable economic development through income enhancement and employment generation. Our Microfinance programme is geared towards achieving this objective. MSP through an extensive process of social mobilization, need assessments and poverty scores focuses local rural needs and gaps. The challenges that the poor are facing in the rural area are mainly access to finance, linkages with the market and opportunities for skill enhancement. Mojaz designed its program and loan portfolio in the sectors those are relevant to the needs and have greater potential for the poorest.
The organization is running its microfinance program in Narowal with the financial support of Pakistan Poverty Alleviation Fund, ORIX Leasing Pakistan & Orangi Charitable Trust. Mojaz has disbursed Rs. 2445 million since with help of PPAF, OCT and ORIX Leasing in the areas of agriculture, livestock and enterprise development (54 % of our beneficiaries have been women). Our recovery rate has been 100% throughout.
MSP uses group lending methodology to provide credit to semi-urban & rural households. As of 30 June 2017, it has over 17601 active borrowers with an outstanding loan portfolio of more than Rs. 410 million. Mojaz is planning to increase its outreach by expanding geographically and introducing new products.
Group lending provides a model, which enables poor communities to collect on a common platform to address their needs. Mojaz support communities to make groups (5-7 people in each group) to disburse loans to community members, guaranteeing the loans and relying on peer pressure and support among members to help ensure repayment. Borrowers start with an extremely small loan and work their way up to an established ceiling.
Given the demand for financial services in the area, it is expected that the organization can maintain even higher growth rates provided it has timely access to lending facility from the PPAF.