MBK provides only one type of product at present, known as the basic working capital. For first-time clients, the working capital size ranges from Rp 1,500,000 to Rp 3,000,000 ($150-300), to be repaid in 50 weekly instalments in weekly centre meetings. The working capital is provided to individuals at a flat interest rate of 20 percent per year, and there is no collateral. However, centre members are requested to provide support and assistance to others when in need, especially when experiencing temporary cash flow problems. If repayment and meeting attendance are satisfactory, the working capital size grows by around 20 percent per cycle after the first renewal.
In 2012, MBK initiated a Syariah-compliant version of the basic working capital product. This product is introduced in areas where there is a request for such a product, either from the clients or from local religious authorities. This product has similar features to the conventional product, and, in addition, is fully compliant with basic Syariah financing principles. The Syariah product is supervised by the MBK Syariah Supervisory Board. This Board submits regular compliance reports to the National Syariah Council.
In the future, MBK may introduce a Small Business Working Capital product to accommodate the following two types of clients, who are at present not adequately served by formal banks, and therefore must rely on informal sources such as moneylenders, friends and family :
1. Regular MBK clients who have taken a small working capital for several years, and who are now ready to make use of higher working capital on an individual basis without the need to attend centre meetings. Based on their history with MBK, they will not require collateral.
2. Micro-enterprises and small family businesses, which are at present not served by the commercial banks. These prospective clients may also not be required to present collateral.