Al Majmoua– the Lebanese Association for Development is an independent, non-profit Lebanese NGO. It was initially created in 1994 as a microfinance program by Save the Children to provide group loans to low-income women entrepreneurs.  In 1998, it spun off into an independent institution.
Currently, Al Majmoua offers group & individual loans, and free non-financial services for business development, product improvement, marketing, networking, and personal development to its borrowers and non-borrowers.
Al Majmoua’s team consists of more than 280 highly motivated, skilled and dedicated full-time employees. The majority of staff is allocated to the branches and Loan Analysts are recruited from their communities, thus building on their social networks and local familiarity to provide quality customer service to the clients.
Al Majmoua is the leading microfinance institution following international best practices in Lebanon. As of 31 December 2013, it had 44,229 active clients from various nationalities, residing in urban or rural areas and Palestinian refugee camps; an outstanding portfolio of USD 35.6 million; and a network of 22 branches countrywide.

Al Majmoua’s performance indicators as of 31 December 2013:
Outreach in active clients-
·         58% micro-entrepreneurs and SMEs
·         52% women
·         33% youth (≤ 30 years old)
·         15% non-Lebanese nationals of which 8% were Palestinian nationals
·         44% located in rural areas
·         12% located in poverty pockets
·         6% located in Palestinian refugee camps

Financial indicators-
·         Operational self-sufficiency (OSS): 154%
·         Financial self-sufficiency (FSS): 149%
·         Return on assets (ROA): 10%
·         Return on equity (ROE): 19%
·         Portfolio at risk (PAR>30): 0.83%

Al Majmoua’s unique lending approach:
Al Majmoua’s core business is to provide loans to those who have limited or no access to formal lending channels, thus ensuring a regular source of income to them and to their families. The MFI complements its financial assistance with non-financial services that further contribute to the sustainable development of beneficiaries’ businesses and lives.

Financial Services:
Al Majmoua offers nine types of loans which are generally disbursed in USD. The loan amounts range between USD 200 and USD 15,000 over periods 6 to 36 months. With exception of group loans, the required collateral can be a pledge of fixed assets or a personal guarantor.

· Group loan to women entrepreneurs and low-income employees; no collateral is required and the group solidarity is considered the only guarantee for the loan.

· Micro-Entrepreneur loan to micro-entrepreneurs with existing micro-businesses and few cases of starts-ups.

· Worker loan to low-income employees who are either not registered in the National Social Security Fund (NSSF) or their salary is lower than the required minimum to receive a loan from a bank.

· Local currency loan to micro-entrepreneurs and low-income workers residing in underprivileged areas in South Lebanon; these loans are disbursed in Lebanese Pounds (LBP).

· SME loan to existing small and medium enterprises.

· Home Improvement loan to low-income individuals who wish to fix or renovate their houses; offered in partnership with Habitat for Humanity which provides technical advice to clients on the particulars of their home improvement needs.

· ICT loan to micro-entrepreneurs with existing or startup businesses in the Information & Communication Technology (ICT) sector, working in rural areas.

· Back to School loan to spouses of existing clients who are at least in their second cycle and have a good repayment history, to pay for the schooling expenses of their children.

· Damej loan to individuals with special needs who have existing businesses or want to start one; the loan can also be provided to the individual’s parents on condition that it directly benefits him or her.

* “Damej” is the Arabic word for “inclusion”.
Non-Financial Services: 

Al Majmoua created its Non-Financial Services (NFS) unit in 2006 to offer a variety of free trainings and social and economic support, mainly to women and youth.

· Business Development Services: business management trainings, financial education trainings, vocational trainings, individual business diagnosis, youth entrepreneurship program.

·  Product Quality Improvement and Marketing: product quality improvement & control, supplier trips, marketing & commercialization support.

·  Personal Development: personal development sessions, awareness sessions, networking.

·  Provision of Toolkit and Equipment: emergency toolkits, business toolkits, client-targeted solutions.

Awards and honors: 

·  Socially Responsible And Transparent (S.T.A.R.) Recognition from the Mix for 2012-2013.

·  Certificates of Transparency from the Mix every year from 2003 to 2013.

·  Citigroup Micro-entrepreneurship Awards (CMA) every year since 2006 to 2013.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Sep 12, 2007 Oct 12, 2005
Total Loans $8,775,600 $685,893,775
Amount of raised Inactive loans $0 $714,575
Number of raised Inactive loans 0 470
Amount of Paying Back Loans $1,693,275 $128,930,950
Number of Paying Back Loans 1,020 143,247
Amount of Ended Loans $7,082,325 $556,248,250
Number of Ended Loans 5,043 693,978
Delinquency Rate 0.27% 6.40%
Amount in Arrears $2,641 $5,340,749
Outstanding Portfolio $968,756 $83,410,037
Number of Loans Delinquent 15 16,969
Default Rate 0.16% 1.10%
Amount of Ended Loans Defaulted $11,413 $6,120,310
Amount of Ended Loans $7,082,325 $556,248,250
Number of Ended Loans Defaulted 25 18,792
Currency Exchange Loss Rate 0.00% 0.21%
Amount of Currency Exchange Loss $0 $1,442,588
Refund Rate 0.42% 0.69%
Amount of Refunded Loans $36,700 $4,737,225
Number of Refunded Loans 30 5,262

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 39.21% 74.26%
Average Loan Size $1,202 $416
Average Individual Loan Size $1,391 $655
Average Group Loan Size $2,036 $1,838
Average number of borrowers per group 3.3 8
Average GDP per capita (PPP) in local country $5,900 $3,378
Average Loan Size / GDP per capita (PPP) 20.38% 12.32%
Average Time to Fund a Loan 11.19 days 6.11 days
Average Dollars Raised Per Day Per Loan $107.49 $68.13
  Average Loan Term 12.74 months 10.68 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 2,498 338,342
  Journaling Rate 45.71% 41.55%
  Average Number of Comments Per Journal 0.14 0.07
  Average Number of Recommendations Per Journal 2.14 1.64

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 33% PY 32.00% PY 32.11% PY
  Profitability (return on assets) 10% -13.5% -1.96%
  Average Loan Size (% of per capita income) 9.40% 11.00% 19.61%

Country Fast Facts

Field Partner Staff

Sarah Amer
Youssef Fawaz
Nadine Mahdi
Houaida Nasrallah
Michelle Touma