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Partner description: 

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 and 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 385 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 December 31, 2016, it had 62,432 active clients from various nationalities, residing in urban or rural areas and Palestinian refugee camps; an outstanding portfolio of USD $59.3 million; and a network of 27 branches countrywide. In 2016, the number of beneficiaries from non-financial services was more than 1,600.

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 and non-financial services: 

Al Majmoua offers 7 types of loans which are generally disbursed in USD. The loan amounts range between USD $200 and USD $15,000 over periods of 6 to 36 months.

  • Group loan: Offered to groups of three women entrepreneurs. No collateral for the loan is required since the group solidarity is considered a guarantee.
  • Micro-entrepreneur loan: Offered to low-income entrepreneurs who can’t financially afford to grow their businesses by increasing working capital needs, buying equipment, or rehabilitating the workplace.
  • Worker loan: Offered to employees not registered in the National Social Security Fund (NSSF) or those whose salary is not sufficient to receive a bank loan.
  • SME loan: Offered to owners of existing small and medium enterprises.
  • Home improvement loan: Offered to low-income individuals wanting to fix or improve their houses.
  • Back to school loan: Offered to the spouses of Al Majmoua’s existing clients who have good repayment history, to cover their children’s schooling expenses.
  • Yalla Shabab loan: Offered to youth (18 - 30 years) owners of existing micro-businesses or workers and fresh graduates with start-ups. “Yalla Shabab” is the Arabic term for “Let’s Go, Youth.” Youth loan includes business development services such as business management and financial education trainings as well as coaching and mentoring prior to and along the loan cycle to help young entrepreneurs successfully launch or develop their businesses

Al Majmoua also works with handicapped clients, offering each of the above products at lower interest rates to individuals with disabilities.

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. Programs include financial literacy trainings, job placement and apprenticeships, business development services and coaching and mentorship opportunities. Al Majmoua does not limit its trainings to its staff and beneficiaries, but also extends this support to other institutions through training other NGO staff.

Syrian Refugees outreach:

Al Majmoua lends to all legal residents in Lebanon (Syrian, Palestinian, Philippines, and other nationalities). Since April 2011, political insecurity and instability in neighboring Syria forced many Syrians to flee to Lebanon. Al Majmoua conducted responsive operations to the Syrian crisis from its branches and three Regional Livelihoods, Training and Employment Centers.

The Syrian crisis affected Lebanon’s economic and social environment and has had direct effects on many of Al Majmoua’s clients on the household, community and business levels. Al Majmoua provided Syrian refugees and Lebanese host populations (women and youth) with a variety of services aiming at economic empowerment and social cohesion. These services include entrepreneurship and business management trainings, financial education trainings, life skills training and community development events.

Al Majmoua also provides individual and group loans to refugees. Group loans are offered to Syrian women together with Lebanese women, which contributes to increasing social cohesion among both populations.

Awards and honors:
 
  • Citigroup Micro entrepreneurship Awards (CMA) every year since 2006 to 2016
  • International Microentrepreneurship Award (IMA) 2014
  • Microentrepreneur of Honor PlaNet Finance Foundation 2014
  • Socially Responsible And Transparent (S.T.A.R.) Recognition from the Mix for 2012-2013
  • Certificates of Transparency from the Mix Market every year from 2003 to 2013

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Sep 12, 2007 Oct 12, 2005
Total Loans $25,515,025 $1,330,802,700
Amount of raised Inactive loans $0 $547,125
Number of raised Inactive loans 0 685
Amount of Paying Back Loans $4,117,425 $147,970,550
Number of Paying Back Loans 3,224 195,474
Amount of Ended Loans $21,397,600 $1,182,285,025
Number of Ended Loans 15,037 1,522,055
Delinquency Rate 0.89% 10.42%
Amount in Arrears $20,351 $9,802,012
Outstanding Portfolio $2,047,466 $94,101,479
Number of Loans Delinquent 103 55,529
Default Rate 0.31% 1.74%
Amount of Ended Loans Defaulted $66,517 $20,609,355
Number of Ended Loans Defaulted 182 50,258
Currency Exchange Loss Rate 0.00% 0.39%
Amount of Currency Exchange Loss $0 $5,175,709
Refund Rate 0.25% 0.59%
Amount of Refunded Loans $64,300 $7,878,725
Number of Refunded Loans 54 7,776

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 54.26% 76.40%
Average Loan Size $1,067 $394
Average Individual Loan Size $1,312 $609
Average Group Loan Size $1,841 $1,761
Average number of borrowers per group 2.9 7.7
Average GDP per capita (PPP) in local country $15,800 $5,776
Average Loan Size / GDP per capita (PPP) 6.75% 6.82%
Average Time to Fund a Loan 11.81 days 7.13 days
Average Dollars Raised Per Day Per Loan $90.29 $55.26
  Average Loan Term 13.43 months 11.34 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 8,775 789,496
  Journaling Rate 49.59% 43.17%
  Average Number of Comments Per Journal 0.05 0.03
  Average Number of Recommendations Per Journal 0.75 0.81

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 31% PY 32.00% PY 25.36% PY
  Profitability (return on assets) 11.3% -13.5% -1.96%
  Average Loan Size (% of per capita income) 9.40% 11.00% 12.88%

Country Fast Facts

Field Partner Staff

Rim Abdallah
Catherine Ahmad
Repayment Reporting API
Sarah Farhat
Youssef Fawaz
Nadine Mahdi
Houaida Nasrallah
Douaa Siblani