Microfinance institute to offer better access to finance
Microfinance institute to offer better access to finance
The Sapthavy Microfinance Institute was officially opened last week, aiming to create more financial opportunities for entrepreneurs and people who need funding for the establishment or expansion of businesses in production, trade or services.
Speaking at the opening ceremony of the institute, its president, Mrs Lasy Misavong said that Sapthavy Microfinance Institute is a private sector internal financial institution, based on the license paper No. 64/DFIM, issued on October 19, 2016 by the Department of Financial Institution Management at the Bank of the Lao PDR.
As we know, entrepreneurs and everyday people still need funding for running business, as they themselves are not in possession of the necessary funds. Because of that, we will contribute to help, support and address the gaps, Mrs Lasy said.
The institute pays attention to business people operating in production, trade, services and aims to facilitate their expansion activities, she explained.
It also provides information and knowledge to our customers to find a market to sell. The service is comfortable and approves money quickly by reducing procedures.
It focuses on customers in agriculture, trade, services and other businesses, granting loans at a minimum of 5 million kip and a maximum of 50 million kip. The approval period is normally two to three days, including options and costs with suitable interest.
Since 2015, during preparations to establish the institute, Sapthavy Microfinance has recruited its staff based on set conditions and criteria through an interview process.
Its staff have also received training through workshops organised by the institute featuring guest speakers knowledgeable in the finance sector.
They have been given the opportunity to attend training institutions to study topics such as credit management and administration, institutional accounts and financial analysis, credit analysis, skill development for supervisors, marketing, service, management and development of organisations and other topics.
The provision of training aimed to boost the competency of staff and ensure that customers receive a high standard of service at the institute.
Since Laos integrated with other Asean countries to form the AEC on December 31, 2015, financial institutions have been growing and developing, especially in the microfinance sector, with revolving funds and competitive rates lower than the interest rate set by the Department of Financial Institutions Management.
So we have to develop our business plan tailored to the conditions in each competition period, Mrs Lasy said.
The Sapthavy Microfinance Institute aims to become one of the developed financial institutions in Laos, by harnessing the potential of the growing national economy, starting from services such as trade in products, profits, trademarks, and doing business effectively.
We are seeking to build trust with our customers, secure the financial system as a vital service - generating confidence and impressing customers through the use of the institute's slogan modern, honest, rapid and impressive.'
According to the statistical d ata from the Department of Financial Institution Management, so far, some 158 financial institutions nationwide have been granted permission for business operation.
Some 16 financial institutions have been given permission to provide deposit services, while another 44 institutions can provide credit facilities but not deposit services. The remainder provide other financial services.
Sapthavy Microfinance Institute's office is located near Sikhay market in Sikhottabong district of Vientiane.
Director General of the Financial Institution Management Department at the Bank of the Lao PDR, Dr Akhom Praseuth also attended the opening ceremony of the institute.
