LTN Cameroon organized its “sectoral on credit”, from 27 to 29 January 2017 in Kribi, around the theme: CREDIT: Secure Value Creation Instrument for a Dynamic and Sustainable CAPE.

It was a great moment of exchange and sharing between the different actors of its credit process and the support directions. The quality of the debates and the commitments made by one and the other made it possible to remove the misunderstandings, dispel the misunderstandings and clarify the gray spots.

It was also a time of meeting and entertainment, which contributed to the cohesion and the strengthening of the links between the teams to approach this new year 2017 in an “IPER” spirit.

Training, environment, health … The Cameroonian microfinance institution not only encourages good practices in corporate social responsibility (CSR) at its customers, it also implements them within it.

Recessed at the back of a row of five houses, the carpentry and tapestry workshop located in the Oyom-Abang district of Yaounde is invaded by seats ready to be clothed.

“All you see there is the fruit of LTN Cameroon,” says Bob Furniture boss – who employs five people – by designating his area of ​​over 1,000 m2. Fifteen years ago, he borrowed 1.5 million F CFA (about 2,300 euros); today, the total credits granted to it amount to 12 million CFA francs.

The establishment, a subsidiary of LTN International, grants microcredits – ranging from 100,000 CFA to 15 million CFA francs – to very small companies facing financing difficulties. “The goal is to bring them to the SME stage. Unlike other microfinance companies, we do not provide credit but lines of credit, “says managing director Jean Roger Zombo.

An Uncommon Style

The microfinance specialist has already distributed more than 204 billion CFA francs to donut sellers, bayam sellam (who, they offer fresh products), fashion designers, artisans, traders, transporters …, which constitute nearly three-quarters of its 21,000 customers.

LTN is distinguished from the competition by its single monthly interest rate of 1.5% (or 18% annually) regardless of the amount of the loan granted. Its guarantee policy also departs from the habits of the sector. Instead of the traditional land title or building, LTN put on the TV, the appliance, the vehicle, in short: “objects with symbolic value for the family, and whose loss is likely to represent a social pressure on the customer, “according to his boss.

There is a desire to promote socially responsible practices

For two years, LTN has been expanding its interventions in rural areas. A movement that is accompanied by training in agriculture, livestock and accounting. Here again, the approach reflects the desire to promote socially responsible practices. “The rate of use of chemical fertilizers and pesticides is very high in the Western region and handling, risky,” says Jean Roger Zombo. We try to orient producers towards the use of organic alternative fertilizers. ”

LTN’s ethical approach also benefits his associates. Despite its small size, the establishment has affiliated its 324 employees to the National Social Insurance Fund (CNPS), and they also benefit from a mutual. Their salaries are aligned on the grid of the collective banking agreement and, in addition to a thirteenth month, the best performing employees receive bonuses financed through a levy of 5% on the gross annual result of the company.

Thanks to a partnership with Crédit Foncier du Cameroun, 5% of employees have access to subsidized loans for the purchase of land and the construction of housing. And in order to allow the LTN to gain in competitiveness, two executives are trained each year at the Technical Banking Institute (ITB) in Paris, while loan officers take microfinance courses in the local subsidiary of the French establishment.

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They have an air-conditioned waiting room, tiny espresso mugs, an executive director that knows how to make a good joke, and a long-standing record of excellent customer service.  They are a poverty-busting force to be reckoned with. Yep, there are some new kids in town.  Who are they?  LA TONTINIERE NATIONALE (LTN), one of Cameroon’s top four microfinance institutions, Kiva’s newest pilot partner, and the MFI I get to work with closely over the next four months of my Kiva fellowship.

Aside from its pilot partner status, LA TONTINIERE NATIONALE (LTN) is not really “new” at all.  The bank has been around since 1999, was privatized in 2005, and has grown to serve over 8,500 customers since.   With branches in Cameroon’s largest urban areas, Yaoundé (the capital), Douala and Bafoussam, LTN provides loans to clients that are owners or managers of “Très Petites Entreprises” (TPEs), or “Very Small Businesses.”  Whether you are a tailor, a beignet vendor or a hardware store owner, you can apply for an LTN small business loan to help with planning, to purchase equipment or for plain ole’ working capital.

Walking into headquarters, one gets the sense that LTN operates very much like a traditional bank.  There is a reception area, a payment window, separate offices for different departments, and the staff is always dressed very professionally.  What aren’t so obvious at first glance, however, are the bank’s underlying social objectives.

LTN seeks to assist customers who would not otherwise have access to traditional banking services. Their mission (translated from French) is to “support the development of small and medium enterprises in Cameroon’s urban centers by providing small lines of credit, fight against poverty by extending funds to the most vulnerable, and ensure the security of savings.”

LTN’s board of directors is keen to work even harder to serve this mission. As a result, it has teamed up with Kiva so that LTN can offer a new loan product to an especially marginalized group of Cameroonians.  This loan type will be targeted to groups of single mothers living and operating small businesses in very urban areas. The amount lent will be smaller than traditional “TPE” loans, with no fees or other service costs charged.  In addition to the loan itself, LTN hopes to provide ancillary services, such as business management courses.

It has been especially interesting to learn about and work with the all-male team of LA TONTINIERE NATIONALE (LTN)’s senior management and board as they work through the implications of taking on this new Kiva partnership and new loan product.  LTN Executive Director M. Jean Zombo is an impressive character, as are his management team cohorts.  This group’s obvious passion to run an operation that is effective and client-centric is apparent.

With a loan application and approval process so thorough and tailored to its clients that it took me almost three hours to completely understand, LTN also demonstrates a deep knowledge of its clients and their businesses.  It is this process that undoubtedly contributes to the bank’s high repayment rates and excellent customer service feedback.

When I requested to go out with a loan officer “in the field” to meet some borrowers, the staff was very excited to provide this opportunity.  We joked about how comfortable I’d be riding on the back of a “moto” across the traffic-ridden (understatement!) and unpaved routes, but in fact I’m quite looking forward to the adventure.

I feel lucky to have been placed with LTN for my Kiva Fellowship, and look forward to seeing how I can help the bank and its clients succeed and grow their businesses and livelihoods.  We will have the chance to learn from each other, both professionally and personally… all while providing new opportunities for Cameroonian businessmen and businesswomen.  Who wouldn’t feel great about that?

Natalie Sherman is a Kiva Fellow working at LA TONTINIERE NATIONALE (LTN).