Title:
AN EXISTENTIAL STUDY ON NOT-FOR-PROFIT MICROFINANCE: CASE STUDY OF BLESSING REVOLVER MICROFINANCE

Authors:
Ali Zainal Abidin, Dwi Prasetyani, Bhimo Rizky Samudro, Indonesia

Abstract:

Microfinance has emerged as a tool to alleviate poverty in developing countries, including Indonesia. Some research proved that providing microfinance access to the poor households would drive their economies and give them the opportunity to combat poverty The implementation of this concept is under a microfinance institution (MFI). Although it is still new, but microfinance innovates fast. One of the recent innovation is the existence of a non-profit microfinance, such as Blessing Revolver MFI. This study aim to explore the mechanisms of Blessing Revolver and its sustainability. This study used qualitative approach with case study analysis, and semi-structured interviews to collect the data. The informants are the MFI’s managers and customers. The results showed that Blessing Revolver MFI offers micro-credit with no interest, no collaterals, and no profit shares with easy terms and conditions. Capital resources derived from donations, either from donors or customers. Besides, Blessing Revolver also aims to extend the micro-credit access to the poor, starting from their customers. Sustainability of this institution depends on both their donors and customers, which can be seen through the economic and social capital that has been established. Blessing Revolver MFI successfully demonstrated the high-level of trust, reciprocity, and  the existence of both material and non-material values for their customers. If social capital as well as donations continue to run, then the sustainability of this activity can be achieved.