MICROCAPITAL BRIEF: Microfinance Institution Tuba Rai Metin Grows in Timor-Leste with Consulting from BASIX Group of India and Support from the INFUSE Program of the United Nations and Australian Agency for International Development (AusAID)

A press release from the United Nations Development Program (UNDP) reports that the microfinance institution (MFI) Tuba Rai Metin (TRM) is quickly growing in Timor-Leste. TRM, which was started in 2002, has reportedly enlarged its client base by 25 percent since the start of 2010. TRM provides loans and savings services to over 3,000 clients, 100 percent of which are women. According to the MIX Market, the microfinance information clearinghouse, TRM had total assets of USD 753,000, a gross loan portfolio of USD 437,000 and 2,838 borrowers as of 2009.

TRM has received support from the INFUSE program, which is jointly operated by the United Nations Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) and the Australian Agency for International Development (AusAID). The goal of the program is to increase sustainable access to services such as savings, loans, money transfer services and insurance.

In 2008, INFUSE began supporting TRM by funding a technical assistance contract with established Indian microfinance institution, BASIX, which operates a lending arm with over 1.5 million customers. “The partnership with BASIX has been very beneficial to us,” says Angelo Soares from TRM, “With their expertise we have made important administrative changes and our business has grown.”

About Tuba Rea Metin (TRM):

Founded in 2002, Tuba Rai Metin (TRM) is a microfinance institution in Timor-Leste, Southeast Asia. It provides loans and savings to poor women. TRM has received support from the consulting arm of BASIX Group, an Indian microfinance organization, and the United Nations Capital Development Fund (UNCDF). According to the MIX Market, the microfinance information clearinghouse, TRM had total assets of USD 753,000, a gross loan portfolio of USD 437,000 and 2,838 borrowers as of 2009.

About United Nations Capital Development Fund (UNCDF):

The United Nations Capital Development Fund (UNCDF) provides investment capital and technical advice to developing countries including the promotion of microfinance and private sector development. UNCDF currently invests in thirty-eight of the least developed countries with a total programme portfolio amounting to approximately USD 200 million (as of 2009). Through its programs, UNCDF strives to contribute to the attainment of the millennium development goals (MDGs).

About BASIX Group:

BASIX Group consists of several companies based in India that work in 15 states in the country and has also extended technical services to other countries in Asia and Africa. Companies in the group provide various services to the poor including financial services, institutional development services and agricultural and business development services. The holding company of the BASIX Group is Bhartiya Samruddhi Investments and Consulting Services, which started operations in India in 1996.

By Matthew Fox, Research Associate

Sources and Additional Resources:

United Nations Development Program: Timor-Leste: Helping People Help Themselves: Microfinance In Action in Timor-Leste: http://www.tl.undp.org/undp/Helping%20people%20help%20themselves%20?%20Microfinance%20in%20action%20in%20Timor-Leste.html

MicroCapital Universe: Tuba Rai Metin: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tuba+Rai+Metin#Description_140_word_limit_

MicroCapital Universe: United Nations Capital Development Fund (UNCDF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Capital+Development+Fund+(UNCDF

MicroCapital Universe: BASIX Group: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BASIX+Gro

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