Fundusz Mikro was founded in 1994 with a US$20 million loan/capital investment from the Polish-American Enterprise Fund with the mission of providing access to loans for credit-worthy but non-bankable micro-entrepreneurs in Poland. For over 16 years Fundusz Mikro has been the indisputable leader on the Polish market for loans to micro-enterprises.
Fundusz Mikro was the pioneer of micro-lending in CEE and later generously shared its know-how with numerous MFIs in the region over the years. Fundusz Mikro played a leading role in establishing the Microfinance Center (MFC) which had its unofficial office located in FM before it was legally registered in 1998. It continues its membership in the MFC.
With headquarters in Warsaw, FM operations were conducted via a nationwide network of 38 branches. Fundusz Mikro was the first MFI in the region which proved that micro-lending in this particular economic environment can be profitable; it became profitable in its 4th year of operation. Since its inception FM disbursed a total of US$380 million, granting over 130,000 unsecured loans (average loan: US$2,650) to 57,000 owners of micro-businesses with a default rate just over 5%. Over 60% of FM’s clients are repeat clients.
At its highest, FM was lending US$47 million a year, disbursing 14,000 loans. Typical borrowers were shopkeepers, carpenters, hairdressers, stonemasons, metal workers, car repair mechanics, taxi drivers and bookkeeping consultants. Most employed less than 5 people.
In 2008, Fundusz Mikro was acquired by ABRIS CEE Mid-Market Fund L.P, a private equity firm with the objective of converting FM into a full-service bank for micro and small enterprises in Poland. In September 2011 the bank hit break even. However, FM Bank cannot support many of FM’s original clients, who are credit worthy but not bankable due to restrictive regulations in Poland.
In 2012, Fundusz Mikro was acquired by its former president, Mrs. Magdalena Dulczewska. She is the 100% owner of Fundusz Mikro. She reactivated FM’s loan activity with the goal of returning FM to its previous prominence. The new methodology, developed by Mrs. Dulczewska and her staff is innovative and cost-effective. As far as we know there are no MFIs in the region that are using a similar methodology. FM focuses on clients who have no other access to commercial credit and are referred by commercial banks that are unable to lend to them due to restrictive regulations in Poland.
Fundusz Mikro was the pioneer of micro-lending in CEE and later generously shared its know-how with numerous MFIs in the region over the years. Fundusz Mikro played a leading role in establishing the Microfinance Center (MFC) which had its unofficial office located in FM before it was legally registered in 1998. It continues its membership in the MFC.
With headquarters in Warsaw, FM operations were conducted via a nationwide network of 38 branches. Fundusz Mikro was the first MFI in the region which proved that micro-lending in this particular economic environment can be profitable; it became profitable in its 4th year of operation. Since its inception FM disbursed a total of US$380 million, granting over 130,000 unsecured loans (average loan: US$2,650) to 57,000 owners of micro-businesses with a default rate just over 5%. Over 60% of FM’s clients are repeat clients.
At its highest, FM was lending US$47 million a year, disbursing 14,000 loans. Typical borrowers were shopkeepers, carpenters, hairdressers, stonemasons, metal workers, car repair mechanics, taxi drivers and bookkeeping consultants. Most employed less than 5 people.
In 2008, Fundusz Mikro was acquired by ABRIS CEE Mid-Market Fund L.P, a private equity firm with the objective of converting FM into a full-service bank for micro and small enterprises in Poland. In September 2011 the bank hit break even. However, FM Bank cannot support many of FM’s original clients, who are credit worthy but not bankable due to restrictive regulations in Poland.
In 2012, Fundusz Mikro was acquired by its former president, Mrs. Magdalena Dulczewska. She is the 100% owner of Fundusz Mikro. She reactivated FM’s loan activity with the goal of returning FM to its previous prominence. The new methodology, developed by Mrs. Dulczewska and her staff is innovative and cost-effective. As far as we know there are no MFIs in the region that are using a similar methodology. FM focuses on clients who have no other access to commercial credit and are referred by commercial banks that are unable to lend to them due to restrictive regulations in Poland.
