FBA has established a Saving & Lending Unit to further contribute to the economic development of the people of Aceh, and enable us to generate revenue to guarantee our independence and sustainability.

The Saving & Lending Unit combines micro finance and micro credit approaches to provide funding to groups and individuals wishing to establish their own enterprises to escape the cycle of poverty that has affected the people of Aceh for many years, but who would not meet the criteria of financial institutions such as banks and other commercial financial outlets.

The micro finance works with formalised groups in twelve Districts of the Aceh Province. The groups (KSM) are independent and self-sustaining. With the guidance of FBA Field Supervisors and Local Motivators, members of the KSM decide what enterprises and activities can be financed, forward their business plans and ensure that the funding available to the group returns to ensure that other small enterprises can be financed.

The individual micro credit approach serves the purpose of providing further assistance to business operators who wish to scale up their operations, but still fall short of the requirements that major banks and financial institutions impose on their customers.

The saving and lending options offered by FBA are available to all individuals irrespective of whether they have been part of the KSM’s or not. FBA conducts its own assessment to ensure that individual borrowers are in a position to service their loans and further develop their business activities. All FBA loan recipients are supported by our Local Motivators for the duration of the loan.