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 285 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 clients.

Al Majmoua is the leading microfinance institution following international best practices in Lebanon. As of December 31, 2014 it had 48,708 active clients from various nationalities, residing in urban and rural areas, as well as in Palestinian refugee camps, an outstanding portfolio of USD 41.4 million, and a network of 23 branches countrywide. In 2014, the number of beneficiaries from non-financial services was more than 13,000. 

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 10 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.
 

  1. 1. Group Loan: Offered to groups of 3 to 5 women entrepreneurs and some workers. No collateral for the loan is required since the group solidarity is considered a guarantee. 
  2. 2. Micro-Entrepreneur Loan: Offered to micro-entrepreneurs with existing micro-businesses and few cases of starts-ups.
  3. 3. 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. 
  4. 4. SME Loan: Offered to owners of existing or start-up small and medium enterprises. 
  5. 5. Home Improvement Loan: Offered to low-income individuals wanting to fix or improve their houses. 
  6. 6. ICT Loan: Offered to entrepreneurs in rural areas with existing or start-up businesses in the Information and Communication Technology sector. 
  7. 7. Back to School Loan: Offered to the spouses of Al Majmoua’s existing clients who have a good repayment history, to cover their children’s schooling expenses. 
  8. 8. Damej Loan: Offered to individuals with special needs to develop their business or start a new one; or to their parents on condition that the loan directly benefits the former. “Damej” is the Arabic word for “inclusion”. 
  9. 9. 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, business management & financial education trainings, coaching and mentoring prior to and along the loan cycle to help young entrepreneurs successfully launch or develop their businesses 
  10. 10. PIF loan to Palestinian refugees entrepreneurs with existing  business to develop.


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 tool kits, business too lkits, client-targeted solutions.


Syrian Refugee Outreach

Al Majmoua lends to all legal residents in Lebanon (Syrian, Palestinian, Filipino 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 3 Regional Livelihoods, Training and Employment Centers.

The Syrian crisis has 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 has also worked to provide Syrian refugees and Lebanese host populations (women and youth) with a variety of services aiming at economic empowerment and social cohesion. These include entrepreneurship and business management trainings, financial education training for low education women, life skills training and community development events.

Additionally, Al Majmoua has started giving group loans to Syrian women refugees together with Lebanese women. This offering of mixed groups (Syrians and Lebanese) contributes to increasing the social cohesion among both populations.
 

Awards and Honors

  • • Citigroup Microentrepreneurship Awards (CMA) every year since 2006 to 2014.
  • • 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 $12,110,675 $852,444,800
Amount of raised Inactive loans $2,000 $405,575
Number of raised Inactive loans 1 203
Amount of Paying Back Loans $2,853,875 $136,385,625
Number of Paying Back Loans 1,743 165,320
Amount of Ended Loans $9,254,800 $715,653,600
Number of Ended Loans 6,364 887,019
Delinquency Rate 0.30% 8.52%
Amount in Arrears $4,784 $7,482,630
Outstanding Portfolio $1,586,091 $87,856,974
Number of Loans Delinquent 23 23,971
Default Rate 0.16% 1.29%
Amount of Ended Loans Defaulted $14,589 $9,263,511
Amount of Ended Loans $9,254,800 $715,653,600
Number of Ended Loans Defaulted 34 24,046
Currency Exchange Loss Rate 0.00% 0.43%
Amount of Currency Exchange Loss $0 $3,656,456
Refund Rate 0.33% 0.64%
Amount of Refunded Loans $40,500 $5,429,350
Number of Refunded Loans 33 5,746

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 47.06% 74.81%
Average Loan Size $1,188 $408
Average Individual Loan Size $1,409 $642
Average Group Loan Size $2,180 $1,813
Average number of borrowers per group 3.4 7.8
Average GDP per capita (PPP) in local country $15,800 $5,939
Average Loan Size / GDP per capita (PPP) 7.52% 6.87%
Average Time to Fund a Loan 11.77 days 6.89 days
Average Dollars Raised Per Day Per Loan $100.95 $59.19
  Average Loan Term 13.11 months 11.03 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,539 432,345
  Journaling Rate 50.90% 41.38%
  Average Number of Comments Per Journal 0.10 0.05
  Average Number of Recommendations Per Journal 1.53 1.30

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 32% PY 32.00% PY 27.69% PY
  Profitability (return on assets) 11.66% -13.5% -0.65%
  Average Loan Size (% of per capita income) 9.40% 11.00% 19.34%

Country Fast Facts

Field Partner Staff

Sarah Amer
Youssef Fawaz
Nadine Mahdi
Houaida Nasrallah
Michelle Touma