Microfinance Program

Srizony Foundation > Microfinance Program

                          ♣  Micro Finance Program

 
 
 
Objectives of Micro Credit Program:
  • Entrepreneurship
  • Self Sufficiency
  • Access to Capital
  • Trickle-Down Benefits
  • Improved Standards of Living
  • Women’s Economic Advancement
  • IGA Training for Poor Members
  • Develop the Housing Facilities
  • Increase the small cottage activities and agro-based production
  • Gaining awareness among poor people to save money for old age
Savings
 
While Micro Credit has been viewed as help in alleviating poverty, there is a growing trend in Microfinance that views savings as a way to help poor people decrease risks and expresses associated with borrowing. Recent studies have shown that poor people can and do save if they are given proper opportunities and incentives. Savings can help them accumulate assets that could be used for business and household purposes which also adds earning interests on savings. Savings deposit also provide capital formation for Microfinance institution thereby enabling them to grow and expand so as to better serve their communities. By generating savings among every group of members Srijony Foundation helps them understand the sense of group ownership, solidarity, and develop savings habits and reduce dependency. This symbolizes the sense of economic security, mutual trust, and self-confidence among the group members towards generating capital for creating sustainable income sources of self-reliance. Here in Srijony Foundation only 5 takas per week minimum is all it’s needed to save. When members take the first loan, they must have deposited 5% savings against the loan. Members can withdraw these savings as per organizational policy.
Sl NoProduct NameLoan Ceiling (Tk)Service Charge (%)Mode of RepaymentDuration No of Installment
01.Jagoran4,000-39,00024 % Declining Method

Weekly/

Monthly

52 Week/

12 Month

46 /12 Installment
02.Agroshar40,000-10,00,00024 % Declining Method

Weekly/

Monthly

52 Week, 12,18 & 24 Month,46, 12,18 & 24 Installment
03.Small & Medium Enterprise (SME)40,000-10,00,00024 % Declining Method

Weekly/

Monthly

52 Week, 12,18 & 24 Months46, 12,18 & 24 Installment
04.Ready Cash Credit Program (RCCP)20,000-2,00,00024 % Declining MethodMonthly12,18 & 24 Months12,18 & 24 Installment
05.Sufalan5,000-25,000

24% Declining

Method

Single6 Month01Installment
06.Buniad4,000-20,000

20% Declining

Method

Weekly01 Year45 Installment
07.Biogas10,000-45,0007.5% FlatMonthly1-2 Year12-24 Installment
08.Housing Loan70,0006% DecliningMonthly3-10 Year36-120 Installment
Loan

In developing countries like Bangladesh, giving financial support or services to poor people is a very expensive business. The cost is one of the biggest reasons why traditional banks don’t make small loans. The resources required for a 4000 taka loan is the same as resources required for a 400’000 taka loan. Administrative and field staff costs are huge. They have to monitor and contact with potential loan borrowers and then educate them in credit discipline. Srijony Foundation gives loans to poor beneficiaries of the rural Micro Credit program. They have access to loans for the development of various kinds of income-generating activities (IGA) that includes Small Trade, Poultry Farm, Goats and Cow Rearing Farm, Vegetable Cultivation, Fish or Aqua Culture, Rural Transport, etc. Though the risk of returning this money is huge, we Srijony Foundation is willing to take that risk for improving the living style of the poor in this country. The Micro Credit Program is currently operating in Jhenaidah, Chuadanga, Meherpur, Kushtia, Rajbari, Pabna, Foridpur, Magura, Narail, Jessore, Satkhira, Khulna, and Dhaka Districts

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