ASA has been widely recognized one of the world’s largest sustainable, cost-effective and fully grants free Micro Finance Institutions (MFI). Over the last 18 years, ASA has achieved highest Operational Self Sufficiency (OSS) and Financial Self Sufficiency (FSS) within a short period of time. ASA cost effective model also proven itself in different countries in Asia and Africa. ASA branches have proved its capacity to reach a break even point within a year. ASA has maintained high self sufficiency from the beginning of operations and it continue to date.

ASA has been rated to have the highest OSS and FSS compare with Global MFIs and Asian Largest FIs.


How does ASA achieve these numbers?

By having:

  • Lean structure
  • Faster recruitment and costless informal training
  • Simplification and Standardization
  • Less over head cost and standard costs structure
  • Maximum utilizations of fund
  • Guided operation based on Manual
  • Cost control steps
  • Innovative management


Highest productivity and portfolio quality (data as of June 2012)

Spring5-8 weeksearly January to late April
Summer5-8 weeksearly May to late August
Fall5-8 weeksearly September to late December


How does an ASA Branch break-even so quickly?

ASA’s microfinance model, known as the ‘ASA Sustainable and Cost-effective Microfinance Model‘ is different from other models and has already been proven as one of the best in the world.

This model is simple as well as cost-effective. This cost effective method, from Branch Office to the Central Office ensures ASA’s dedication towards its mission for reducing poverty.

Each Branch is managed by a Branch Manager (BM), One Assistant Branch Manager (ABM), 4 – 6 Loan Officers (LO) and a Peon who are responsible to conduct all activities of the branch smoothly.

On an average a mature ASA branch caters to around 2,000 group members and every new branch demands Bangladeshi Taka 10 (ten) million (USD 1,25,000) to start its activities.

Once a branch starts operations, it takes (9-12) months for it to break even and become self-sustainable:

The key assumptions in this model are:

  • There are 4 – 6 Loan Officers per branch, each with a 500 client target achieving a total of 2,000 clients within a year for the branch
  • Each client receives BDT 10,000 (USD 147) as their initial loan
  • Loan loss Provisioning is as per MRA guideline
  • Service Charge (interest rate) is upto 25% declining, calculated for a 45 installment loan spread over 12 months
  • Each member deposits BDT 20 per week as savings and pays BDT 15 as membership fees when joining ASA