BAOWE-Pelzing (Microfinance Lending Institution) will bank the under-banked clients by bringing credit and other essential financial services within the reach of people who are poor to be served by regular financial institutions, due to lack of sufficient collaterals. In short, this institution is for people without money, and not for people with money. Since poverty is the main concern in developing countries like ours, BAOWE-Pelzing will be bridging the gap between the banked and under banked clients in Bhutan. BAOWE-Pelzing will be operating similar to the commercial banks but on comparatively smaller scale basically to provide equal opportunities for all Bhutanese in terms of Credits, thereby avoiding the suppression of poor people by rich people who lend credit on high interest rate, and achieve inclusive growth. The BAOWE-Pelzing will use both the individual and group lending methodology.

Given our huge mandate, BAOWE since its inception has successfully commissioned numerous projects, creating livelihood opportunities for more than three thousand families in Bhutan. We are now currently in the process of identifying, developing and proposing projects that will serve and benefit the vast majority of underprivileged sections of our society. However, we feel seriously challenged and constrained by the lack of adequate finances which we can direct and invest creatively and innovatively to achieve our objectives more expeditiously. Our own Micro Loan Institution would greatly facilitate BAOWE to effectively and efficiently fulfill our mandate and invest in ways that fit out mandate and commitment.

Our intention, focus and priority will not be solely driven by profit maximization measured through ambitious financial targets, but rather it will be impact maximization in people’s lives and choices and helping people initiate, conduct and diversify their businesses to make reasonable profits. So our approach cannot be equated with charity per se too. BAOWE is committed to remain dedicated to our mission of serving the poorest of the poor communities.

BAOWE MLI will contribute to:

  • Financial Inclusion in the country-Supplement to RMA’s objective of improving financial inclusion in Bhutan
  • Job creation and employment growth
  • Improved living standards for the working poor
  • Economic and social empowerment of women
  • Entrepreneurial development in rural areas