In 2007, when The 1990 Institute first started working with the Pucheng County Women's Sustainable Development Association (PCWSDA),  the Association had 500 borrowers and was not financially sustainable.   That is, it was unable to cover its operating costs with interest income from the loans it made.  Today, it is able to spread its costs over a portfolio of 2,200 outstanding loans, has become financially sustainable without having to raise interest rates, and at the same time has maintained its 100% repayment rate .  It is now recognized as one of the best-managed microfinance institutions in China.  

Much of this success can be attributed to the continuing improvement in the management and operational processes of the Association . In addition, the Association has strengthened its governance, raised more loan capital, and improved the training of its borrowers and its staff. 

Through the generous donations of many individuals and foundations in the U.S. and Hong Kong, the 1990 Institute has been able to donate a total of $288,000 to the Association.  This has significantly contributed to the growth of the Association's loan portfolio, now exceeding RMB 5.3 M (US$835K).  Since inception, about 10,700 loans have been made.    

In February of this year, with the support of the You Cheng Foundation, PCWSDA received its first bank loan from CITIC Bank. This RMB 1 million line of credit will enable the Association to expand its loans to another 500 borrowers.  The 1990 Institute donation of $100,000 this year also enabled the Association to loan to another 325 borrowers.  When the Association has a loan portfolio of 3,000 customers, it will be one of the largest non-profit microfinance institutions in China!

The 1990 Institute is proud to have been an integral part of this success over the past four years.

…. Please read more about our Microfinance Program by clicking on the tabs on the left …

11/16/2011