The Bank operates in Karachi, which has a population of nearly 12 million. Karachi has been divided into several clusters. This would enable the Bank to reach the poor segments of the population and market its products more effectively. Loans are given on individual or group basis, and without any tangible security of the borrower except where a offers his security, tangible or otherwise, to support the borrower. In the case of groups loans the borrowers form homogenous group of 3-5 members and which who not be blood relatives. They give guarantees severally and jointly. Working funds facility is allowed for a maximum period of 12 months, while capital loans are for a maximum period of 2 years with repayments in monthly installments. The size of the loan depends on assessment of the need and ability to service the loan with the maximum loan to any one borrower is not to exceed Rs.150,000/-, as per Prudential Regulations for Micro-Finance Loans issued by the State Bank of Pakistan. It is also ensured that total exposure of a single borrower from banks/MFI/MFB/other Financial Institutions/NGOs etc does not exceed Rs.150,000/- in aggregate. Our focus is on the poor, especially women, and persons who possess skills and potential to create their own jobs and income with a small amount of ready cash.

Micro Finance loans are given after a proper assessment of the need and the repayment capacity of the customer. They aim at helping the poor increase their income, build viable business, enhance asset ownership and reduce their vulnerability to day-to-day disruptions. Loans are given for acquisition of raw materials and any item for trade/business and small scale assembling, purchase of small machines and equipment, purchase of motor cycles/low price transport to assist business endeavor, to acquire/rent a space for business etc. The loans are given for income generating activities which help to reduce poverty.

While processing loan proposals it is to be ensured that the borrower: 

	Has a valid identity card issued by NADRA.
	Has at least a two-years old business at the same fixed location.
	Must enjoy good reputation locally, and third party sources should give positive assessment of his/her character, financial worth and social standing in the area.
	Should be living with immediate family members.
	Should be between 18 to 58 years of age.

Sanction of the loan is based on detailed financial information such as nature of business, income/expenditure, family, incomes, reliable reports from third party sources, as well as personal assessment and recommendation of credit office. Loans are structured to minimize risks. We aim at small size loan with huge number of borrowers, so as to reach as many people as possible. Loans are given sequentially with terms to match the ability of the client to repay. Our procedures for approval and disbursement of loans are quick, convenient, and cost effective and are tailored to the clients needs. The bank has developed well-defined coherent business plans and infra-structure and is geared to handle large number of small disbursements and recoveries.  

The bank pays particular attention to develop, in its credit officers, the skills and expertise to assess the characteristics of potential borrowers and become familiar with characteristics that reduce default. They are trained to adopt a proactive rather than a reactive approach. The loans are closely monitored through regular visits to the borrowers homes and/or places of business and by keeping a track of financial flows, repayment cycles and emerging social, economic, political and environmental factor which could effect risk profile of the Bank.

Our products are marketed by the credit officers working in each defined market. The credit offices are expected to gain complete knowledge of the area of their operations, active and prospective clients as well as nature and working of various trades and business specific to that area. Area profiles developed by the field staff provide basic reference point on which bank credit in a particular area is built. The field officers are expected to cultivate durable personal relationships in order to ensure that they have complete up-to-date information of various events and happenings in the area relevant to our business. They are also responsible for recovery of loans.

Our management system and constant performance assessment provides us the framework to improve effectiveness in realizing the goals. The close interaction of our trained and motivated staff enables us to achieve a balance between financial and social goals.

Our experience shows that group based microfinance services build trust between borrowers, improve relationships within the wider community and increase self confidence and enhance self esteem.

We have observed that enhanced income from micro enterprises is generally invested in children’s education. Thus the children are likely to stay longer in school and have lower drop out rates. We fervently believe that education in the long run, besides improving economic well being, will result in a more tolerant and enlightened civil society.

Rozgar Micro Finance Bank is strictly regulated by The State Bank of Pakistan and Regular inspections and adherence to prudential rules ensures transparency and sustainability of the institution.