Microcredit Industry in a Nutshell

Microcredit is a financial innovation which originated in Bangladesh where it has successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases, begin to build wealth and exit poverty.

However in Malaysia, Microcredit has evolved in many areas of small businesses and acts as a source to assist in current social demand. It is given by the non-banking financial institutions or small business entrepreneurs and the repayment method is much similar to the mainstream banking organizations.

Smart Card Microcredit Solution by OrbitCard

Introduction

Looking for a superb solution for the Microcredit industry? We might have just the right package for you!

OrbitCard is now proud to present its generic solution specifically designed for the Microcredit industry. The solution is based on the smart card technology which aims to provide simple, efficient and seamless resolution.

It is targeted for the Microcredit Loaners who provide credit facility to individuals based on specific repayment schedule/duration.

Solution

Generally, the outlined solution offers an easy loan collection and repayment method through smart cards and terminals. Each borrower that has been approved by the Microcredit Loaner shall be given a smart card that contains the Borrower’s personal information and loan information. The personalization of the cards will be performed by the Loaner at its premise using a standard PC and a Smart Card Reader. Once the cards are issued to the Borrower, the process of collection and repayment will get easier and easier from this point onwards!

Whenever the loan is due for its scheduled (weekly/monthly) repayment, the Loaner equipped with a terminal may be able to check the borrower’s personal information, loan information, store the payment made by the borrower and review the history of payments via the smart cards. When the relevant transactions had been made, a simple receipt can be printed out for the Borrower’s reference.

All of the repayment transactions will also be stored in the terminals and can be uploaded into the Loaner’s database via online or offline approach.

Benefits

There are various advantageous that both the Microcredit Loaners and Borrowers may derive by adopting this solution. A few of those benefits are as outlined below:

• It is a forward inclined technology which adopts a more secured environment and method.
• Fast access to borrower’s vital information and instant storage of loan/repayment information.
• Both terminal and smart cards are convenient to use and carry.
• Encourages a paperless environment.
• Value-added facility given to the borrowers will certainly mirror a good image and boost confidence.