What is it?
Although the microfinance sector is growing at a fair clip, many small MFIs still grapple to upscale their operations. Due to limitations in governance, management, systems and procedures, the smaller MFIs do not possess enough credibility to attract the financial markets effectively. AmFA’s primary mission is to bridge the gap between the supply and demand and help the smaller MFIs to upscale their operations and thereby expand outreach. While the nature of engagement of ACCESS with each of these institutions varies following the context, the aim is to bring NGO/MFI partners together on a common platform to assess institutional needs for technical support and present an aggregation of demand for on-lending funds to the financial markets.
Products and Services
AmFA adopts a two pronged strategy: while providing need based technical support to its members, it also builds operational and strategic relations with the supply side players to facilitate inflow of funds. In addition to the array of technical services provided to the MFIs, the AmFA members have a privileged access to a wider range of products and services:
Revolving Loan Fund
The platform allows the institutions to have access to a Revolving Loan Fund (RLF), currently housed in CARE. The fund provides “bridge loans” as an interim measure till the MFIs get linked to mainstream markets.
MFI performance analysis and benchmarking
ACCESS analyses AmFA members’ performance indicators, financial statements etc. and publishes the key performance ratios and indicators in an annual publication, MICROSCAN. Providing in-depth and complete financial analysis of partners’ portfolios, MICROSCAN is a part of ACCESS strategy to share partners’ plans and performances with the financial institutions and fostering possible on-lending relationship with AmFA partners.
Facilitation of on-lending fund linkages
Being able to attract investments is one of the biggest challenges for nascent, emerging as well as growing microfinance institutions. ACCESS assists AmFA members in getting linked to commercial banks for investments and on-lending fund support.
Information Dissemination
ACCESS took initiatives to disseminate the respective performance data of its members on large database such as “MIX”, and portals such as “Microfinance Gateway”. Portfolio information of members is shared with financial institutions and published in the “Alliance Directory”. Special individual member achievements are published in “AmFA Line”, a quarterly newsletter.
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