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 Till 2019 In 2020 End 2020
No. of Branch 11 –5 -5
No. Member 32 -12 -12
Disbursed (million in BDT) 2.12 00 00
Outstanding(million in BDT) 00 00 00
Repayment Rate  00 00 00
Savings (million in BDT) 00 00 00

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 Till 2019 In 2020 End 2020
No. of Branch 85 85
No. Member 3811 -326 3485
Loan disbursed (m) 122.17 30.64 152.81
Loan outstanding (m) 23.19 -6.48 16.71
Repayment Rate (%) 99.52 99.62 99.64
Savings (m) 18.40 2.01 20.41

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 Till 2019 In 2020 End 2020
No. of Branch 107 1 108
No. Member 95,087 -6246 88841
Loan disbursed (m) 20,678.19 1853.62 22531.81
Loan outstanding (m) 1,194.9 56.06 1250.96
Repayment Rate (%) 99.52 99.24 99.52
Savings (m) 554.64 7.83 562.47

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

Status of Micro-enterprise/Agrosor Loan as on 31 December 2020

 

Particulars Till 2019 In 2020 End 2020
No. of Branch 106 2 108
No. Member 23,728 343 24071
Loan Disbursed (m) 7,988.05 1329.78 9317.83
Loan Outstanding (m) 1,187.30 -70.5 1116.80
Rate of payment (%) 99.52 98.81 99.52
Amount of Savings (m) 460.05 19.17 479.22

Table 5:   Members by category, loan portfolio and savings

Categories of members No. of members Loan Outstanding

(Thousand Tk)

 Savings

(Thousand Tk)
2019 . 2020  2019 2020.  2019 2020
Beggar 32 20 —
Ultra-poor/Buniad 3,811 3,485 23,190 16,710 18,400 20,410
Poor/Jagoran 95,087 88,841 1,194,900 1,250,960 554,640 562,470
Micro-entrepreneur/ Agrosor 23,728 24071 1,187,300 1,116,800 460,050 479,220
Total 1,22,658 1,16,417 2,405,390 2,384,470 1,033,090     1,062,100

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

 

Table 6:  Amount of  Different Saving Balance in 2019 and 2020

Name End of 2019 (In Million BD) End of 2020 (in Million Bd)
General Savings 664.10 663.72
Special Savings 186.32 211.88
Family Savings 182.67 186.50
Total 1033.09 1062.10