Day2

15th November

Meeting with M. Samsuri Mohd at the AIM headquarters in Kuala Lumpur.
AIM is a Malaysian NGO established in 1987. Its aim is to deliver micro-credit without collateral nor legal action in case of default of payment. It assists very poor households to lift themselves out of poverty through income generating activities.
This financing is provided regardless of race, religion, sex or political belief. The six steps of loan attribution :
- household means test : visit of the household to evaluate the standard of living
- reinterview : by the AIM local branch-manager
- group formation : 5 persons with different projects, same sex (mainly women because more reliable), equal education, same village but without family links
- group training : 1 hour per day during 7 days
- group recognition test : to evaluate the group
- individual loans and weekly reimbursment

The groups elects a chaiman and meets once a week in the presence of an AIM representative. The purpose of this meeting is to manage the demands of loans, the reimbursment and the financing of a compulsory savings fund (minimum 5% of the credit amount). The group pressure helps to keep a high repayment rate (99.91 %) and the group's savings is used to finance further developements of the projetcs created.
Each group belongs to a local center (8 groups per center maximum) which are supported by local AIM branches. These branches also check loans utilization.

1987-1999 :
- 135 000 qualified households,
- 87 000 AIM members
- 60 000 financed members
- Ringitt 381 millions loans ($ 100 millions)
- 60 branches with 770 employees

The ressources of AIM come from : bank foundations, the World Bank, the Malausian State and a 1 to 12 % fee on loans.
AIM manages 3 economic programs : Ikhtiar Loan (micro-credit), single mother scheme and Fishermen Scheme, and 2 specific programs : Housing and Children Education.

20th November - Meeting at the Malacca Branch

Malacca Branch manages only the urban Single Mother Scheme. This program was launched in September 1998. Among 4 000 single mothers in Malacca, 87 women are members out of which 27 are borrowers for a total amount of Ringitt 110 000 ($ 30 000).
6 employees work in this branch. They gently gave us half a day to present us their activities and two of the financed projects.
- Curtains and clothes confection and selling in a small shop in the suburbs of Malacca. Loan of Ringitt 5 000 for 2 years ($ 1 200)
- A small Malaysian restaurant in the Baqu Berendam village, 8 km from Malacca. Loan of Ringitt 10 000 for 3 years ($ 2 400) in 1999. Ita is a member of a 3 persons' group and her project generates income for her, her 3 children and her mother.