Poverty alleviation by increasing sustainable income sources, useful assets together with required knowledge and skills is center to the first bottom line of BMIC services. There are different strategies, approaches and activities of BMIC to ensure continuous focus of this bottom line.
1. Poverty Focused Approach
BMIC first select districts that have the prevalence of high poverty. Then it demarcate divisions in the district to establish branches. BMIC continuously track poverty levels of clients at each loan cycle in order to assess the impact of the services provided. BMIC uses the Poverty Probability Index (PPI), an internationally recognized poverty measurement tool for this purpose.
Poverty outreach of BMIC clients in 2020 is depicted below.
2. Customer Centric Products and Services
BMIC adopts credit plus approach where the clients are provided with Enterprise Development Services (EDS) and collateral savings in addition to the credit facilities. Based on customer requirements, BMIC regularly innovate products and services.. One of the notable example was introducing Enterprise Development Loan (EDL) for growth potential businesses of existing clients.
3. Obtaining and Use of Client feedback
Knowing that the customers are the key to organization’s success, BMIC always respects and responds to their feedback. BMIC welcomes their suggestions, complaints and criticism regarding the organization and its products and services to improve them in accordance with the needs and preferences of clients.
BMIC obtains clients’ feedback through several mechanisms including cluster meeting discussions at field level, feedback obtained at the cluster leader programme at branch level as well as research conducted to assess the impact of BMIC products and services by the research unit.
4. Client Protection
Client privacy
As a policy, BMIC refrains from disclosing any information relating to its clients to external parties other than for any statutory and legal requirements.
Client Grievance handling mechanism
BMIC has a clearly defined mechanism for clients to lodge complains/inquiries whenever required. A dedicated hotline 0114-311 939 is assigned for this purpose during office hours with quality assurance system of recording. The complaint handling system is linked to the corporate management at the Head Office level. Issues are addressed within a reasonable time period. A feedback is provided if the issue is not resolvable with an attempt of educating the client about the real nature of the issue and as to why the issue cannot be resolved.
5. Value Added Services
Client Appreciation
BMIC conducts branch wise Best Cluster selection program based on the cluster performance including the community activities they have done. Accordingly, Field Officers area wise and overall branch level best clusters are selected and financial rewards are presented at the cluster leader’s program where all leaders of the branch are invited.
From its inception, BMIC organizes Best Entrepreneur Awards with a gala awarding ceremony biennially. This event showcases the real impact of microfinance as an effective intervention in the economic empowerment of low-income people to become productive contributors to the economy of the country.
Suwasahana Scheme: BMIC’s clients are provided with special cash benefits via Suwasahana Scheme. In the event of funeral in the family LKR 6,000 hospitalization benefit of LKR 3,000 a year is provided to clients under this scheme. Yearly contribution for this scheme is around LKR 8 Mn.Since 2016, a total sum of LKR 62 Mn has been provided to clients under this scheme.
Loan Risk Fund (LRF) Benefit: MIC provides the facility for settlement of full loan and interest outstanding through the LRF in the instances where the client or client’s spouse demise, having a severe illness and full disability of client or breadwinner of the family. Each client contributes 2% equal to loan value for this fund.. Since 2016, the BMIC has provided LKR 105.97 Mn worth of benefits to the clients.
Bright Student Scholarship Programme: BMIC offers a special scholarship programme for talented students of its clients who are studying for G.C.E. A/L exams. LKR 1,000 per month for the students of Arts and Commerce streams and LKR 1,500 per month for the students in Science and Mathematics streams are provided for 2 years in Grade 12 and Grade 13. This facility will be extended for the 3rd year in case a student sit for the A/L examination for the second time. Since 2017, BMIC has offered LKR 39.3 Mn worth of scholarships.
6. Community Development Initiatives
BMIC carried out an array of community projects with the prime objectives of addressing the community needs and uplifting their living standards. Funds are allocated annually for each branch for activities such as renovation of community buildings, purchase of furniture for common use, renovation of other infrastructure in religious places, carryout socio cultural activities, etc.
BMIC is an endorsee to the Smart Campaign since 2018