LOLC to reach out to 22 countries by end 2023
LOLC, which has expanded its horizons outside Sri Lanka in 2007 by setting up its first operation in Cambodia, is aiming to have a presence in 22 countries by the end of 2023 while at present its coverage is 15 countries.
In a media statement, LOLC said its largest inclusive finance target markets are in the developing countries of Asia, Africa and potentially Latin America. LOLC is positioned to cover a population footprint of over 2.1 billion in Asia, which provides a glimpse into its powerful influence.
Similarly, it has a presence in seven countries in Africa, covering a 482 million population base. By the end of 2023, LOLC is looking to enter Latin America, which will be another breakthrough market for the group. “Accordingly, the group will be the only finance house with a scale that has the ability to cover most of the addressable inclusive finance markets globally,” the statement said.
Some of its successes in helping communities includes the life of U Thant Zin, a paddy farmer in Auglan, Myanmar. LOLC Myanmar lent him an agricultural loan
amounting to US$ 670 in 2019 and currently, he is the proud owner of a 10-acre paddy field owing to hard work, perseverance, and multiple loans from LOLC Myanmar.
Ruth Olawepo, an owner of a clothing store, decided to partner with Fina Trust Microfinance Bank Nigeria, a subsidiary of LOLC, and availed of a loan of $12,000 in 2021. Since the first loan, she is now on her third cycle with the bank and the loan amount has been increased to $24,000. She currently has three shops in Lagos Island Branch and also has outlets upstate.
The statement said likewise the lives of hundreds of such aspiring individuals around the world are being transformed through LOLC’s services that promote financial inclusion.
Inclusive finance is critical for borrowers at the bottom of the pyramid as it gives them quick funding for entrepreneurial finance, unlike traditional finance, which is known for red tape and a slow credit financing process, with obstacles such as the borrower not being either eligible to get a loan or the lengthy loan processing times defeating the purpose of quick loans. The difference in LOLC’s inclusive finance services is that it provides quick financing, understanding the urgency of the bottom of the pyramid entrepreneurs and their lack of collateral.