Donation

Microfinance Program

Microfinance Program 2018-03-29T21:39:27+00:00

Microfinance  

The 1st activity of IDF was piloting the Grameen Microfinance Model in Chittagong Hill Tracts, a remote difficult and hilly area of Bangladesh. IDF customised the components of Grameen as per local situation and gradually innovated a number of products which enriched IDF integrated approach for poverty alleviation. More than 30% of IDF beggar and ultra poor members gradually graduated to micro-entrepreneurs.

IDF’s clients can now be classified into 4 categories as mentioned below:

  • Beggar
  • Ultra Poor
  • Poor
  • Micro-entrepreneur

Beggar Program

In order to support the most vulnerable people especially the beggars in the society, IDF launched a separate program called beggar program in May 2006 with the financial and technical assistance of Grameen Trust. The name of the project was “project dignity”. The objectives and status of the program are as follows:

Objectives:

  • Build confidence and capacity of beggar;
  • Enable them to gain access to resources and provide credit to undertake various income generating activities;
  • Turn the beggar into productive manpower;
  • Improve their overall socio-economic status.

Basic features are:

  • All loans are interest free and can repay when they have money. There is no fixed date and time for it.
  • Beggar members are protected by IDF insurance program with free premium.
  • Each member receives an identity badge with his/her photograph and logo of IDF.
  • Beggars can give up begging gradually when they achieve self-sufficiency.
Particulars Upto 2015 In 2016 Up to-2016 
No. of Branch 19 19
No. Member 266 -6 260
Disbursed (m) 2.12 2.12
Outstanding (m) 0.31 -0.01 0.30
Repayment Rate   99.32 100   —
Savings (m) 0.05 0.05

Ultra Poor Program

IDF started this program at the beginning of its journey in Bandarban Hill District and gradually expanded to different parts of the country. Currently IDF is implementing this program with the financial assistance from PKSF.

The details of the program are as follows:

Objectives:

  • Build confidence and capacity of the ultra poor;
  • Organize and build a receiving mechanism of the ultra poor through which they can receive their necessary services, inputs and financial assistance for the improvement of their socio-economic status.
  • Alleviate poverty from the very grass-root level of the country.

Loan ceiling :   Up to Tk.10,000

Particulars Upto 2015 In 2016 Upto 2016
No. of Branch 19 54 73
No. Member 484 2,013 2,497
Loan disbursed (m) 29.32 32.88 62.20
Loan outstanding (m) 1.87 16.66 18.53
Repayment Rate (%) 100 99.98 99.98
Savings (m) .77 1.65 2.42

Poor Program

IDF started this program in Shoalok Mouja of Bandarban Hill District in 1993 and expanded gradually to different parts of the country during the past 24 years.  The details of the program are as follows:

Objectives:

  • Build confidence and capacity of the poor
  • Organize and build a receiving mechanism of the poor through which they can receive their necessary services, inputs and financial assistance for the improvement of their socio-economic status.
  • Alleviate poverty from the very grass-root level of the country.

Loan Ceiling :   Up to Tk.40,000

Particulars Upto 2015 In 2016 Upto 2016
No. of Branch 80 5 85
No. Member 104,521 -4,960 99,561
Loan disbursed (m) 12,747.65 1,843.41 14,591.06
Loan outstanding (m) 939.46 94.28 1033.74
Repayment Rate (%) 100 99.74 99.74
Savings (m) 490.11 30.05 520.16

Micro-Enterprise

IDF introduced this product in 2002 for the graduate members who attained capacity to utilize and manage bigger income-generating activities. The loan size depends on the projects and capacity of the members. The objectives of the program are:

  • Create new employment opportunities
  • Increase income of the family
  • Increase living standard
  • Increase production of local products
  • Enhance efficiency of entrepreneurs

 The criteria of selection of a member for micro enterprise are as follows:

Criteria of Graduate Member

  • Developed capacity to manage bigger loans.
  • Received Enterprise Development and Business Management (EDBM) Training;
  • 90% attendance in the weekly/fortnightly meetings;
  • 100% proper utilization of previous loans;
  • Good track record of running business profitably;
  • At least 10% of the proposed loan are accumulated in her savings account;
  • Willing and able to contribute at least 10% of the investment ;
  • Cooperation and involvement of family members in the Enterprise;
  • Regular deposit in savings account;
  • Willingness to attend monthly cluster meeting.

Loan terms

  • Working Capital :    1 year
  • Fixed Capital  :   2 years

Loan repayment conditions  

  • Weekly installment
  • Fortnightly installment
  • Monthly installment

As of December 2016, a total of 12840 members received Tk 2597.23 million under this program. The details are given in Table 4.

Table 4:  Status of Micro-enterprise as on 31 December 2016

Particulars Upto 2015 In 2016 Upto 2016
No. of Branch 75 7 82
No. Member 8,082 4758 12840
Loan Disbursed (m) 1,667.79 929.44 2597.23
Loan Outstanding (m) 319.5 227.85 547.35
Rate of payment (%) 99.66 99.69 99.69
Amount of Savings (m) 72.64 57.60 130.24

Table 5:   Members by category, loan portfolio and savings

Categories of members Member Loan Outstanding

(m Tk)

Savings

(m Tk)

No. of member joined in 2016 No. of cumulative member as at Dec. 2016. In 2016 Cum. In 2016 Cum. 2016
Beggar -6 260 -.01 0.30 0.05
Ultra poor 2,013 2,497 16.66 18.53 1.65 2.42
Poor -4,960 99,561 94.28 1,033.74 30.05 520.16
Micro-entrepreneur 4,758 12,840 227.85 547.35 57.60 130.24
Total 1,805 1,15,158 338.78 1599.92 89.30      652.87

Note: Membership of 25,620 inactive members were cancelled in 2016 which had negative impact on membership growth.

Savings and credit by size, number and amount

  1. i) Savings

IDF offers four kinds of savings to its members. During any crisis, the members can use their saving without any restriction. Many borrowers do not withdraw their savings to use it as capital in future. The savings products are:

  1. Savings Fund
  2. Special Savings
  3. Savings Account
  4. Family Savings

 

On 31st December, 2016, the total no. of retained savers and amount of savings are respectively 1,15,158 and Tk.652.87(m). The No. of savers and their savings are shown by savings size in the table 6 below:

Table 6:  Distribution of Savers as of 31 December 2015 by size and amount

Savings size Number Amount (m. Tk.)
Upto       2,000 55,370 87.19
2001    – 5,000 34,574                       130.47
5001    – 10,000 10,311 128.17
10001  – 20,000 8,402 144.11
Above  20,000 6,501 162.93
Total 115,158 652.87

ii) Credit

  1. The total No. of retained borrowers and amount of loan disbursed on 31 December, 2016 are respectively 102,312 and Tk. 2,806.23 (m). The no. of loans and size are shown in  Table-7. 

Table 7:  Distribution of loan disbursed in 2016 by size, number and amount

Loan Size (in Tk) Number Amount (m.Tk.)
Up to  10,000 18,712 173.15
10001 – 30000 71,946 1,654.88
30001 – 50000 6,987 288.17
50001  – 100000 2,359 284.10
100001 – 300000 2,205 379.22
Above 300000 103 26.74
Total 1,02,312 2,806.23

Loan by purpose

IDF clients receives loan for various purposes. Most of them are related to agricultural activities, animal husbandry, poultry, gardening and micro-enterprise businesses. Growth of loan amount by purpose during 2012-2016 is shown in Table 12.

Table 12:  Growth of loan amount during 2012-2016 by purposes

Sl. # Purpose 2012 2013 2014 2015 2016
01. Farming 23.4 24.72 25.72 24.50 26.53
02. Cow rearing 12.2 11.6 12.01 11.95 10.01
03. Goat rearing 7.75 6.72 4.00 4.02 4.09
04. Fruit gardening 8.6 7.47 6.74 6.95 6.98
05. Pig rearing 4.4 1.22 1.00 .99 1.00
06. Poultry 11.7 11.88 9.89 10.01 10.04
07. Home gardening 4.4 1.31 5.59 5.65 5.61
08. Local transport 2.5 2.66 2.42 3.02 3.07
09. Nursery 1.1 1.51 2.92 2.91 2.92
10. Handicrafts 3.2 2.74 1.64 1.36 1.21
11. Garments/tailoring 0.75 2.98 1.86       2.02 2.18
12. Fisheries 1.2 1.42 3.59      3.61 3.37
13. Housing 3.2 3.82 5.52 5.41 5.55
14. Water sanitation 2.5 0.98 1.15       1.20 1.51
15. Beef fattening 4.5 6.7 4.05 4.01 4.09
16. Small business 3.4 6.09 5.70 5.85 5.12
17. Micro enterprise 5.2 6.18 6.20 6.54 6.72
  Total 100.00 100.00 100.00 100 100.00