Micro credit

Berendina Microfinance Institute (BMI) started its operations in 2007 with the provision of credit services. During the past 8 years, BMI has achieved significant growth and client coverage in terms of depth and spread of outreach. This was achieved without drifting from the original mission of poverty reduction and providing prosperous living condition for the low income segments of Sri Lanka's population. BMI targets the rural poor as its clientele and especially focuses on areas in Sri Lanka experiencing acute poverty for its operations.

Currently, there are 28 branches concentrated in the Districts of Kegalle, Nuwara Eliya, Kandy, Anuradhapura, Trincomalee, Batticaloa,Ampara,Mullathivu ,Kilinochchi and Vavuniya. Further, microfinance operations are also carried out through 55 Plantation estates in Kegalle & Nuwara Eliya districts. All these branches are established according to the “Standard Branch Model” consisting of one Enterprise Development Officer (EDO), one Administrative and Accounts Officer, five Microfinance Officers (MFOs) and a Branch Manager. The service delivery mechanism of BMI is individual loans through “clusters” which is informal credit groups made up of 30-35 members.


Financial Services

Types of loans provided


Outreach and Financial Performance

As of 31st December 2016, BMI/BMIC had 4,209 clusters with 103,709 members of which 94% are active borrowers.  BMI, continuously monitors the cluster performance and attendance of the clients to cluster meetings and also invests on the cluster leader development through soft skills training. Each year the best clusters are selected based on selected criteria such as attendance, number of members, on time repayment and the cluster is awarded with a monetary reward which should be used for community development activity.

BMI/BMIC has 97,032 borrowers with an outstanding portfolio of over 2.6 Billion rupees as at 31st December 2016. These figures include borrowers in Tea Estates from branches in Kegalle and Nuwara Eliya Districts and also conflict affected households in Trincomalee District.

The Portfolio at Risk for (PAR) 1 day is 0.45%. This is calculated considering the total principal value outstanding of loans that have at least one payment even a day overdue.

The organization is operationally viable and covers all the expenses from the operational income. The operational self-sufficiency as of 31st December 2016 was at 117%.