Micro-Credit

Brief on Micro-Finance Program:

Micro-Finance is a mother program of Resource Development Foundation (RDF). From the inception RDF have been providing the financial services to the marginal and poor HHs. Initially MF program have targeted rural poor HHs and later on included urban poor HHs. Presently RDF has been providing savings and credit support by operating 66 Branches in 13 Districts to poor, moderate poor and small medium entrepreneurs.

Target Clients:  RDF microfinance clients are basically women because they are credit worthy. Male are also eligible for loan.  Up to June 2022 total number of clients is 38,690. Out of 38,690 clients women are 36,132 which are 93.38%. 

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The objectives of the MF program are:  

Primarily- To ensure the financial access to the poor, moderate poor and entrepreneurs, grow savings habit, increased family income, capital and assets.

Finally- Contribute in poverty reduction, women empowerment and sustainable development.

Product and Services:

RDF has been providing Credit, Savings, Beneficiary Kallayan (Loan insurance), Training and Doorstep Counsel Supports to clients under two different credit products. The credit products name is 1. Microcredit and 2.  Entrepreneurship Development Scheme (EDSc).

Micro-credit goes to individual clients through village/Moholla/para based Unnayan Sangho. Loan ceiling are lowest Tk. 10,000 and highest Tk. 300,000. It is collateral free loan and repayment modality weekly.

Entrepreneurship Development Scheme (EDSc) loan goes to micro and small entrepreneurs. Loan ceiling lowest Tk. 50,000 and highest Tk. 5,00,000. Loan Officer goes to individual Borrower in a month for collecting loan installment. It needs taking written guarantee from client’s side and some documents.

Savings Product:

To grow savings RDF initiate and implement three savings products viz. 1. Compulsory Savings (CS), 2. Voluntary Savings (VS) and 3. Beneficiary Development Scheme (BDS).

Compulsory Savings is mandatory for all MF clients. Client deposit at least Tk. 50 in a week. Voluntary Savings deposit weekly/monthly. On the other hand BDS is voluntary nature fixed term deposit.  Clients save fixed amount monthly basis.

Beneficiary Kallayan: It is security fund, generally called loan insurance.  Each Borrower pay Tk. 1 against per Tk. 100 loan received.  As result, for the death of Borrower and or parents, balance of due loan realized by the Benificiary Kalayan fund.

Training & Doorstep Counsel Support: Before giving loan to clients RDF provide training to clients. Training provides in two ways: a). Class room training and b) Field training. Class room training provide by the RDF training centre by their professional trainers. Field based training done by the program people (Area Manager, Branch Manager, and Loan Officer) at Unnayan Sangho. Training related all cost bears by the program not clients.

Similarly RDF provide doorstep counsel support to clients at need based for enhance their knowledge, capacity and performance. In addition, experienced staff assess the clients loan proposal and projects before submit the proposal. To ensure the investment of loan money, Loan officer, Branch Manager and Area Manager made visit clients house and project place within a month.

Operational Structure:  Branch Office is heart of the operation structure.  Field level operation is done by the Branch Office.  Area office is upper tier of Branch Office and then Zone Office. All operational activity instructed and managed by the Head Office.

Internal Control System: 

Every working day Head Office (HO) collect Loan, Savings and Management related information (Soft copy) form Branch office for regular progress monitoring purpose. HO based MIS Unit is done this job.  RDF has Internal Audit Department. Audit Department has been conducting financial, management and programmatic audit regularly. Audit Department prepared report and shared with concern for dispute correction and improvement.