Innovative finance solutions: MSC’s role in BAV’s microenterprises and housing microfinance portfolio

• Dec 28, 2023
• 1 min

MSC supported Bina Artha Ventura (BAV) in Indonesia to develop, pilot test, and expand outreach and portfolio of individual loan products for the MSME segment and housing microfinance. BAV disbursed 74 loans worth USD 52,000 within three months with MSC’s support.

MSC supported Bina Artha Ventura (BAV) in Indonesia to develop, pilot test, and expand outreach and portfolio of individual loan products for the MSME segment and housing microfinance. MSC helped BAV expand within the microenterprise sector. We did this through the individual or joint liability group (JLG) loan products and business premise improvement loans in the housing microfinance or business improvement segment. MSC assessed the demand-supply gap, conducted market research, and designed the operation processes. We also designed the pilot-test procedures, projections for the pilot, controls, protocols, and monitoring framework.

The pilot for both products started in three branches in May 2014. With MSC’s support, BAV disbursed 74 loans worth USD 52,000 in three pilot branches within three months in 2014. It intended to reach ten branches by the year’s end. Bina Artha scaled the MSME product and gained more than 26,000 clients.

IFC commissioned this project.