Pakistan-based FINCA Microfinance Bank, a for-profit entity whose name derives from the US-based Foundation for International Community Assistance (FINCA International), recently announced a partnership with Pakistan-based Millat Tractors to increase the availability of machinery to farmers in the country. Under the new arrangement, customers of FINCA Pakistan are able to purchase tractors with “easy terms and conditions through a quick and a hassle-free process.” Millat will assist buyers in learning to care for the machinery.
Founded in 1964, Millat manufactures and sells tractors, forklifts, generators and irrigation machinery. As of December 2021, the firm reports PKR 22 billion (USD 97 million) in total assets.
Established in 2008 as Kashf Microfinance Bank and purchased by FINCA International in 2013, FINCA Pakistan offers savings accounts and loans to individuals and entrepreneurs for tractors, house repairs, motorcycles, livestock, and a variety of other needs. The microbank reported serving 1.2 million customers as of 2021 and holding PKR 38 billion (USD 170 million) in total assets as of 2022.
As of 2022, FINCA Pakistan is held by FINCA Microfinance Holding (FMH), a for-profit subsidiary of FINCA International that was founded in 2011. FMH owns 17 microfinance institutions employing 7,600 people who serve 2.8 million customers in Africa, Eurasia and Latin America. It holds a loan portfolio of USD 683 million and client deposits of USD 408 million. FMH’s minority investors comprise three development finance institutions and two private companies.
FINCA International was founded in 1984 by Dr John Hatch, who is known for helping to develop “village banks,” through which each member guarantees the loans of other members. As of 2020, the organization holds total assets of approximately USD 1 billion.
By Ben Greissman, Research Associate
Sources and Additional Resources
Daily Times article
https://dailytimes.com.pk/972759/finca-microfinance-bank-partners-with-millat-to-provide-tractors-to-farmers/
FINCA Pakistan homepage
https://finca.pk
FINCA Pakistan annual report
https://finca.pk/financials/
Millat homepage
https://www.millat.com.pk
Millat annual report
https://www.millat.com.pk/annual-report-21-22/
FMH homepage
https://www.fincaimpact.com
FMH annual report
https://www.fincaimpact.com/about/financial-information/
FINCA International homepage
https://finca.org
FINCA International annual report
https://finca.org/about-finca/financials/
Previous MicroCapital article on FMH
https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-lends-45m-to-finca-microfinance-holdings-to-increase-outreach-range-of-services/
Previous MicroCapital article on FINCA
https://www.microcapital.org/microcapital-brief-finca-international-to-offer-microfinance-services-to-fund-off-grid-solar-systems-in-africa/
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