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As
a completely
self-reliant project, the ABA is an excellent model of a
practice that can be effectively sustained. The
project covers the costs of its micro finance and technical
assistance services entirely through the revenue generated
from loan recovery. The association has developed that
capacity through several means: it charges an appropriate
but reasonable interest rate on loans; it extends loans with
high degree of efficiency; and it selects borrowers with
care so that their repayment rate is above 99%. Moreover,
because of the high level of client satisfaction, the demand
for the services provided by the project and its client base
is continually expanding ensuring a dependable and growing
source of revenue.
The
structure and methodology of the project
has actually been replicated by a number of foundations
throughout Egypt that have also been established for
the delivery of micro finance services and technical
assistance.
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