FCCT

What is FCCT's mission?

FCCT's mission is "to provide ladders of socio-economic opportunities with programs geared towards ecological balance for the empowerment of low and middle-income households."

Meanwhile, the organisation's vision is to be: "An impressive-sustainable cooperative with vibrant socio-economic programs and services, empowered, resilient and environmentally compliant communities"

What types of financial services does FCCT provide?

FCCT specialises in providing loans and savings facilities to low-income sectors of the population, particularly women and people living in rural areas. FCCT provides a wide range of loans to individual members that start from as little as $53 to over $12,000. The majority of FCCT members request loans of less than $1,000 to be paid back over 1-36 months. FCCT members also have access to several different interest-bearings savings accounts, as well as remittance services. All members of FCCT must buy a minimum of one share (approximately $17) in the organisation in order to become a member and access member services. All members receive an annual share-out based on the number of shares they have in the organisation. In addition to financial services, FCCT provides a range of non-financial services to its members, including agricultural extension, marketing and low-cost consumer stores.

How much interest does FCCT charge?

Microfinance institutions (MFIs) charge higher rates of interest for several reasons. Firstly, the administrative costs of making many small loans are much higher than making fewer larger loans; secondly, they take more time assessing the feasibility of applications and thereby reducing risk because borrowers cannot offer traditional forms of collateral nor do they have salaried incomes; thirdly, MFIs often operate in geographically remote areas with low population densities and this means that they incur greater operational costs; and fourthly they often accompany loans with a range of training and technical advice. The most representative loan product of FCCT funded by Lendwithcare attracts an Annual Percentage Rate (APR)* of 31.58%.

*The Annual Percentage Rate (APR) is a standard way of expressing the cost of a loan that allows for comparison between loans. It includes annual interest, insurance, and fees that the borrower must pay, and is expressed as a percentage of the amount borrowed.

Does FCCT provide any training?

FCCT provides an impressive number of non-financial services to its members. These include providing technical assistance to their farmer members, marketing support and market-linkage, access to low-cost community shops and purified water, and subsidised schooling for pre-school and primary age children. FCCT also engages in a number of social outreach programmes such as tree planting and coastal clean ups, and agricultural training sessions with prisoners.

Where can I find out more information about FCCT?

Further information about FCCT is available from the organisation's website here.

*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.

Sources: *World Bank **United Nations Development Programme ***World Health Organisation ****World Population Review