FINADEV >> Our product

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Our Products

FINADEV's mission is to commit its resources to strengthen the microfinance sector through providing a wide range of services to various targets. Keeping both refinancing and direct lending in its portfolio ensures higher profitability, lower risk and high volume of operation.

Very Small Loans to Groups: Akwe Kleun

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Sinceitsstart-up FINADEV has evaluated the female traders' needs for small loans, espacially those who work on the main beninois markets. They often work without any offical legal status in the informal sector. However they run an active business on their own financial resources with a high rate of return. Providing them with additional and commercial funding can help them get out of poverty and improve their small business and life. FINADEV is their new partner on a long and sustainable basis. We accompany women and meet their increasing needs from small to larger and formal businesses.

Since the creation of this product FINADEV has granted more than 15.000 small Akwe Kleun loans

Akwe Kleun is a very small loan granted to small peer groups (2-4 female traders), with a 20% guarantee deposit and a repayment on 3-9 installments.

The annual rate is 12% (flat) all taxes included, TTC. A guarantee fund is paid by the client along with a 0.5-1%.

From April 1999- november 2001, 15,500 small loans have been granted through Akwe Kleun with an increasing demand.

The average loan is FCFA 273,000 (USD 364), ranging from USD 66-666.

The Contaminated Portfolio over 30 days (PAR) has been kept below 0,24 % and the vast majority of initial borrowers have been granted a second or third loan for a larger amount.

FINADEV has expected tthe product to other beninois markets through the Financial Bank's network. It We will get the support of CARE International to adapt Kleun features to evolving needs of our clients. We have recently conducted a IKM (Impact Knowledge Management) survey with PlaNet Finance on a large sample of FINADEV clients, confirming the impact and benefits of our loans.

A new loan product (Akwe Djreme) has been launched recently for women with higher needs (FCFA 500 000- 3 000 000).

Small Entreprises: co-financing and direct funding

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The small entreprises with no access to formal credit are numerous in Benin. They still have limited management capacities and have no guarantees to obtain a loan from commercial banks. The average loan often varies from 1-5 FCFA million.

FINADEV is working out solutions with donors and partners interested in this part of the microfinance sector through guarantee and/or rotative funds allowing small and micro entrepreneurs to get their first loans from a bank.

Loans to groups

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Groups of salaried workers within private or state-owned companies: Financial Bank launched 3 years ago a type of loan tailored for workers with no access to banks to get loans for housing improvement and access to small lands. The "Social Loans" have reached 4,000 people with a repayment rate close to 100%.

The loans have been made through mutuals, formal groups, associations and unions of salaried workers, Members on their own could not have access to funding given the small size of their needs and the lack of guarantee.

Groups of farmers: FINADEV has already granted loans to groups of farmers to buy machinery. We are interested in finding out how to design solutions for agriculture. We are working (refinancing) with FENACREP, an MFI working exclusively with farmers in Benin.

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FINADEV 01 BP 6335 (inside Financial Bank Ganhi) Tél. (+229) 21 31 40 81/ 95 79 23 84 Fax: (+229) 21 31 79 22 Cotonou - BENIN E-mail: finadev2002@yahoo.fr