WHAT WE DO
LIFE INSURANCE
We pioneered the first microinsurance loan in Lao PDR through a partnership with Allianz General Lao PDR in 2017 and with technical support from Swiss Capacity Building Facility.
In 2020, we started “Savings with Insurance” and currently have over 20,000 borrowers protected by loan insurance, and 27,000 depositors are insured. Crisis preparedness in Lao families is rare, with only 20% of the population covered by health insurance – health shocks and catastrophic out-of-pocket expenditures pose a significant risk to most households. The absence of adequate safety nets limits the ability of households to mitigate these risks.
In 2017, we pioneered the very first formal insurance product a microfinance institution has offered as distributor in Lao, a credit life plus policy in partnership with the national insurance leader in Lao PDR, Allianz General Lao, and with authorisation from the Bank of Lao PDR.
As many of our customers are not familiar with insurance and its benefits, we are expanding and broadening our financial education strategy and services through face-to-face training supported by digital tools and digital distribution channels.
MICRO LOANS
We are the leading providers of ethical microfinance in Lao PDR.
We offer collateral-free loans as working capital, serving the financial needs of all Lao people. We were the first MFI registered in Lao in 2005, and the first to offer microloans in rural areas outside of Vientianne providing inclusive and sustainable finance in regions with no previous access to credit.
We are reducing rural poverty in Lao by offering capacity building business incubator and business accelerator loans to help entrepreneurs develop viable businesses.
We promote social entrepreneurship and community-based enterprises to help create livelihood opportunities and uplift communities from poverty.
We are proud to offer highly competitive loan interest rates, well below the Lao MFI market average, and deposit interest rates providing higher than average returns.
We maintain an exceptionally low PAR>30 rate, with minimal non-performing or distressed loans and a high loan repayment rate, through analytical and critical management of our microloan portfolio, including risk management, internal audit, compliance, regulation & supervision. We have a below average operational expense ratio and strong operational self-sufficiency, along with healthy ROI and assets.
We are working on microfinance technology developments, including branchless banking, and have a major focus on innovation in microfinance technology.
To learn more about our microfinance loan portfolio, loan types, and borrower profiles, see our Company Profile in the “Who We Are” menu above.
DEPOSITS & SAVINGS
We offer both savings and time deposits to over 226,000 depositors.
We also established “Smart Kids Savings”, which is associated with the financial
education provided in conjunction with Aflatoun to 62 schools in Lao PDR; so far, more than 50,000 students have opened a savings account with us.
Of the poorest 40% of the population, it is estimated that only around 10% of people aged over 15 have savings with a financial institution. We aim to drastically change that by ensuring everyone has access to financial services and continuing to improve our financial education programs.