Company profile

CreditAccess Asia N.V. (“CreditAccess”, “CAA”, the “Company” or “Group”) is an innovative operator of integrated credit institutions across Asia, offering loans and other financial products and services to self-employed, micro enterprises and small enterprises in India, Indonesia and the Philippines. The Company started its operations in 2006 under the leadership of a group of private investors/promoters. Since its founding, CreditAccess’ objective has been to invest in the most promising Micro Finance Institutions (“MFIs”) and to start up new credit institutions targeting micro enterprises and small enterprises, with a strong focus on India and S/E Asia. By the end of the financial year 2016 (“FY 2016”), which ended March 31, the Group had a total loan portfolio of around € 360 million, and approximately 1.5 million active clients and employed some 6,200 people worldwide.

Products & Services
CreditAccess provides credit and other financial services to self-employed individuals and micro businesses and small businesses in Asia. The Company enters each market targeting the basic microfinance market segment, offering simple and transparent loan products, with a ticket size of usually between € 200 and € 500, delivered through an innovative method derived from the Grameen Bank “Group Lending” model (described on page 6). In a subsequent phase, CreditAccess offers – through dedicated business units – individual lending products to small businesses, usually with a ticket size of between € 500 and € 2,000. Besides credit services, the Company also offers other financial services such as health insurances and life insurances and pension services.

Grameen Group Lending Model
The group lending model was developed by the Grameen Bank in Bangladesh in the 1970s. In this model, individuals form a group and they are given several days of financial training before a loan is granted from the financial institution. From the outset, the emphasis lies on strengthening the clientele’s organising skills in order to manage their business well, making them aware of the features and obligations linked to the loan. Multiple groups form a centre and meet weekly or biweekly to meet the staff of the credit institution and to repay their loan instalments.

Grameen Lending process

The field staff of an MFI selects the target clients among the low income people living in the same socio-economic context and offers the opportunity to receive a simple credit product. The clients willing to receive the micro-loan form a Group.

The Group of prospective clients receive training on financial education and on the features of the credit product offered. The clients learn how the repayment methodology and the mutually binding group guarantee work.

Upon successful completion of the training, each borrower receives
a small loan that allows them to start or expand a business in
order to generate income.

Borrowers meet weekly/biweekly with centre managers
to make loan and interest payments and to receive
financial training.

The Grameen model offers a basic financial product
built on four key pillars: capital, savings, credit and
financial education.

Customers
CreditAccess’ core clients are low-income self-employed individuals, usually managing a small trade business or operating in agriculture-related activities, earning between $ 2 and $ 10 a day. In addition, CreditAccess serves a higher client segment, composed of small businesses, usually generating income between $10 and $100 per day.

Geographical areas
The Company’s head office is located in the Netherlands and its Operating Companies are located in Asia. The Company started operations in India in 2008, and then expanded operations to Indonesia in 2012 and the Philippines in 2014. CreditAccess plans to start up operations in Vietnam in 2016 and possibly in a fifth country by 2019/2020.

Currently, CreditAccess has three Operating Companies:

  • Grameen Koota in India (CAA-GK)
  • Bina Artha in Indonesia (CAA-BAV)
  • One Puhunan in the Philippines (CAA-OP)