MICRO FINANCE PROGRAM

BRIDGE micro finance program was started in 1993 with 100 women in the rural areas Mongla, Bagerhat District. For achieving overall socio-economic development we were given only BDT 500.00 to each member at very competitive interest. At the beginning we were taken quick initiatives to help the rural poor woman for their socio-economic development. Later on urban women were considered for self-reliant and a progressive life for their own through implementing urban micro finance program. Now BRIDGE able to disburse the microfinance program. Now BRIDGE able to disburse the micro finance support in a comprehensive range and insurance service which avoid family risk after her death. At present BRIDGE Micro finance program is running in 248 villages of 11 upzila under 3 districts namely Khulna, Bagerhat and Barisal.

GOAL

Overall goal of our projects are: poverty alleviation, food security, better environmental management, gender empowerment and socioeconomic development by giving loan to the rural and urban poor.

OBJECTIVES

  1. To organize poor people in development work.
  2. To protect the poor people from the hand of local money lenders
  3. To create capital by gradual small savings.
  4. To create purchasing capacity and to develop marketing system.
  5. To involve the women in development work for their empowerment.
  6. To reopen small-scale village industries which are closed due to lack of capital and management.
  7. To improve family’s well being through income generation.
  8. To increase social capital.

Component of Micro-finance Program:

  1. Group Formation
  2. Micro Credit Program
  3. Micro Saving

1.Group Formation

All BRIDGE loans are made to individuals and formation a group. The range of the group member is 20-30. At first, when they formation a group they deposit money weekly and earn some knowledge through our community organizer (CO). They CO facilitate and ensure themselves for supporting money as loan. After 6-19 week members pay a small admission fee and then they are eligible to receive their first loan. Similarly 30 members can receive loan after 15 days by rotationally. Application and payment process are very simple, transparent and standardized which make them simple to understand. Repayment began 15 days after getting loan.

2.Micro Credit Program

All BRIDGE loans are made to individuals and formation a group. The range of the group member is 20-30. At first, when they formation a group they deposit money weekly and earn some knowledge through our Community Promoter (C.O). Then C.O. facilitates and ensures them for supporting money as loan. After 6-19 week members pay a small admission fee and then they are eligible to receive their first loan. Similarly 30 members can receive loan after 15 days by rotationally. Application and payment process are very simple, transparent and standardized which make them simple to understand. Repayment began 15 days after getting loan.

 

 

 

 

 

Weekly meeting among members

BRIDGE offers small loans to a woman whose monthly income does not exceed TK. 1500 and land less than 0.2 acres of homeland. Support IGA (income generating activity) on paddy husking, livestock rearing, handicraft manufacture, small business, and rickshaw/van pulling etc. Initially loan range from Tk.5,000-20,000. Within 46 weeks they back the loan in equal range. The service charge is 15% flat and principal with 6 weeks grace period. In branches of PKSF fund the service charge is 12.5%. Women attend weekly meeting where CO collected payment and also savings. Women benefit from these activities in 2 ways: (i) Through income generation which will supplement household income and (ii) women gain increased bargaining power as they are able to make a larger financial contribution to the household.

At the end of 2011, BRIDGE had 685 groups with 12786 members. Total cumulative loan disbursed under this program was Tk.908.23 million. BRIDGE’s recovery rate for the small loan program was 99.36%.

A.1. Year wise Portfolio Analysis

Year Cumulative Disbursement Outstanding Recovery rate On time recovery rate
2004 199872942 36882761 98.20% 99.20%
2005 222840963 39220462 98.10% 99.50%
2006 334752000 45930000 98.20% 99.50%
2007 398271000 48542478 97.25% 98.50%
2008 475764963 51508919 97.84% 98.20%
2009 516581963 48368331 97.00% 98.00%
2010 602614963 43935735 97.81% 98.50%
2011 656318963 46411666 98.20% 99.17%
2012 721518963 49028134 98.63% 99.17%
2013 787993963 51150361 98.64% 98.65%
2014 857829963 57915980 97.70% 97.72%
2015 908232963 49633534 99.36% 93.69%
2016 927667809 51451239 97.87% 94.23%
2017 968667809 81451254 97.87% 94.23%
2018 1128677878 112451254 96.87% 97.23%

3.Micro savings

Our main target for poor women is to gain increased their Knowledge, Attitude and Power (KAP) as they are able to made a larger financial contribution as well as taken decision making in their families where micro saving is a vital organ for departure from existing situation.

BRIDGE has another provision where women can take 7-8 times loan when their savings stands about 40-50 thousand taka. This will give her social security and h/she can business independently and no more burden against discriminatory action being a women.

BRIDGE’s member able to saving Tk.1665.00 per member. As on December’2011 total savings balance was Tk.21268416. BRIDGE has offered both mandatory and voluntary savings to its members, as mobilized savings are capitalized and added to the revolving loan fund (RLF).

Besides this, if a member wants to gone from group obviously she get her savings with bank interest. Regular member’s savings book has been updated with bank interest annually.

A.2. LOAN INSURANCE

BRIDGE loan insurance ensured that a member’s loan does not become a burden to her family in the case of her death. In 2004, it was added that if her guardian is dead then these system is valid.

A.3.MANAGEMENT

BRIDGE has developed an efficient operational system in a cost-effective manner. The key to BRIDGE efficiency is the “BRIDGE CREDITMANUAL” a comprehensive, detailed guide of all BRIDGE processes that has makes it possible for BRIDGE to decentralize daily decision-making.

Key indicators of Operational System

  1. Management decentralized to branch level
  2. Innovative recruitment/training methods
  3. Simple and standardized accounting and record keeping procedures.

Key Indicators of Monitoring and Internal Control Mechanisms

  1. Staff members provide BRIDGE with a security deposit
  2. Joint signature required for withdrawal from branch bank account
  3. Community Promoter preserves cheques rotationally.
  4. Cash book is maintained by Branch manager
  5. Central office staff visit field regularly and check all documents.
  6. External audit conducted annually.
  7. Credit coordinator (CC) visit all branches one day in a month and Area Manager (AM) visit 6 branches in a week.
  8. Executive Director visits branches permanent and occasionally.
  9. BRIDGE’s internal Auditors at audit field twice in a year at both field and Head office level.

A. 4. BRIDGE Micro finance Program at a Glance

Sl. No. Particulars 2016 2017 2018
1 No. of District 03 03 03
2 No. of Upazila 13 10 09
3 No. of Union/Ward 64 58 56
4 No. of Village/Moholla 214 209 215
5 No. of Branch 14 14 13
6 No. of Community organizer 50 90 109
7 No. of Group 725 700 685
8 No. of Member 15084 13794 12786
9 Savings Balance 19871392 21484020 21268416
10 Savings Balance Per Member 1500 1575 1665
11 No. of Borrower 11500 10920 12706
12 Cumulative Disbursement 927667809 968667809 998677878
13 % of Borrower 86% 87% 84%
14 Member/Community organizer 300 315 330
15 Borrower/Community organizer 225 238 260
16 Portfolio/Community organizer 1600000 1800000 2100000
17 Average Loan Size 15000 16000 18000
18 Recovery Rate 98.64% 97.72% 97.45%
19 Op. Self Sufficiency 118% 110% 114%
20 Financial Self Sufficiency 110% 107% 109%