Kashf Foundation
Micro-lending for Women
Kashf is a pioneer in extending access to financial products to poor customers.
The Challenge
- Because 34% of Pakistan's population of 140 million lives at or below the poverty line and 80% survive on less than $2 a day, the use of credit is pervasive. However, local moneylenders can charge up to 350% in annual interest.
The Innovation
- Kashf lowers operating expenses by standardizing products and procedures, thereby providing access to credit at significantly lower levels of interest.
- With both rural and urban reach, Kashf operates its branches using a franchise model, allowing for closely managed growth.
- Kashf is introducing a Home Improvement Loan (HIL) to meet the needs of the majority of low-income families who do not qualify for traditional mortgages, for lack of requisite income or collateral, and who prefer to incrementally build and finance their homes according to the size of their pocketbook.
The Impact
- Kashf Foundation has become the second largest private microlender in Pakistan, with over 300,000 clients and $100 million in loans.
- Its HILs provide families with the opportunity to repair and expand their homes, construct sheds for their animals, add on rooms, and also to increase their earning potential, since make a living from home.
- Kashf has achieved financially self-sufficiency and can now reach out to even more women to help increase their income and move themselves and their families out of poverty. Kashf’s goal now is to reach 1 million women in Pakistan by 2010.