MICROCAPITAL BRIEF: Malaysian Microfinance Institution (MFI), Amanah Ikhtiar Malaysia (AIM), Claims “World’s Highest” Microcredit Repayment Rate of 99.2 Percent

Malaysian microfinance institution (MFI), Amanah Ikhtiar Malaysia (AIM), has made a claim on the “world’s highest” microcredit repayment rate of 99.2 percent. A report from the Malaysian National news agency, Bernama, also states that of the 87 AIM branches in Malaysia, 61 have 100 percent repayment rates. AIM began operations in 1987. It reports total assets of USD 232 million, a gross loan portfolio of USD 133 million and 165,000 borrowers as of 2008.

AIM chairman, Datuk Amir Hamzah Ahmad, argues, “The secret behind AIM success in the recovery of debts is none other than the quality of the borrowers themselves. They are all women and as women they are more focused and capitalize on the loans to improve their families’ standards of living.”

About Amanah Ikhtiar Malaysia (AIM):

Amanah Ikhtiar Malaysia (AIM) is a private trust that was established in 1987. AIM operates as a microfinance institution (MFI) that provides capital financing, savings and healthcare financing assistance. According to the MIX Market, the microfinance information clearinghouse, AIM reported total assets of USD 232 million, a gross loan portfolio of USD 133 million, return on assets (ROA) of 2.32 percent and return on equity (ROE) of 14.49 percent as of 2008.

By Matthew Fox, Research Assistant

Sources and Additional Resources:

Bernama News: Amanah Ikhtiar World’s Best In Managing Micro-credit Financing, 18 July 2010: http://www.bernama.com/bernama/v5/newsgeneral.php?id=514558

MicroCapital Universe: Amanah Ikhtiar Malaysia (AIM): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Amanah+Ikhtiar+Malaysia+(AIM)

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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