The Micro-Finance Development Fund (MDF) was established in 2002 in the framework of Micro-finance outreach component of the Sustainable Livelihoods Project (SLP), which is jointly implemented by the Government of Mongolia and the International Development Association of the World Bank, in order to expand the outreach of financially and institutionally sustainable microfinance services to poor and vulnerable households of Mongolia.

Micro-Finance Management Office

The daily management and operation of the MDF is carried out by the Micro-Finance Management Office, which is located at the Bank of Mongolia.

Objective

To reach residents of remote rural and financially under-served areas by providing sustainable financial services and to expand outreach of such services by improving quality of financial services and products

Sub-components :

"Sub-component I" - Wholesale loan products to provide micro-loan to poor and low-income households, individuals of remote rural areas through lending to Participating Financial Institutions (PFIs) are:

• Wholesale loan/Leasing loan
• Long-term loan/Leasing loan
• Non-collateral loan

"Sub-component II" - Financial grant products targeted to support microfinance sector development and to provide additional services:

• Support financial sector innovations and development of new product through providing competitive grant to financial institutions which introduced innovative approach matching to the needs and the demand of poor and remote households, individuals;
• Implement sub-programmes using public information channel and other dissemination channels in order to increase financial education of individuals;
• Create microfinance services information corner at the PFIs and its branches and, in order to improve financial education and capacity building of borrowers in remote rural areas and soums, organize distance-learning training in cooperation with the PFIs;
• Conduct survey on microfinance sector in Mongolia and provide technical assistance to financial institutions operating in microfinance sector;
• Organize capacity-building training for PFIs’ staff;
• Expand framework of cooperation with international microfinance institutions in order to introduce international best practices of microfinance in Mongolia.