UNDP Myanmar’s HDI microfinance project targets those who would not normally qualify for credit through the banking system: women, the landless, and other marginalised groups. With appropriate support and services, these people can manage loans and improve their livelihoods.  Repayment rates for the project currently stand at an impressive 98 per cent.   
Working closely with implementing partner NGO PACT, the project provides small amounts of credit to the poorer segment of communities in rural areas of Myanmar.
Interested villagers form groups of five to ten members. Each member invests the money in their chosen business and makes repayment by installments according to the agreed-upon schedules (weekly, bi-weekly or monthly).
The interest rate is modest compared to that of moneylenders, but usually set at a level that can cover inflation and administrative costs for financial and institutional sustainability. Default risk is minimised through "social collateral": if one person defaults, their fellow group members must repay the loan or be disqualified from receiving further loans.
The amounts loaned are rather small, with an average of US $60. This is enough to make a significant difference to people struggling to make ends meet. Saving is also included as an important service of microfinance.
As of mid 2008, the project covers 4,189 villages across 22 townships in three zones, with a total of  372,193 clients (97 per cent are women).  1,794,375 loans, amounting to more than US$ 88 million have been disbursed to clients since the beginning of the project.  Current loan outstanding is US $17.2 million, and the total client savings amount is US $2.7 million.  There are many women in the target villages whom started with a very small loan years ago and have now grown into successful small business owners.