OBJECTIVES OF THE PROGRAM

The overall objective of DESHA’s microfinance program is to achieve sustainable development through improvement in the livelihood of the target people through financing and proper guidance to their IGA’s.

The other objectives are as follows:

• Ensure that eligible DESHA groups or members obtain ready access to a line of credit to enable them to undertake IGA, according to their needs, choice and capacity to operate.
• Ensure that loans are issued for both on-farm and off-farm activities and generate income and create employment opportunity for them.
• Ensure savings mobilization as an alternative source of financing during emergency.
• DESHA assists group or households to develop the necessary skills and confidence in managing business and financial affairs.
• In addition to provide service, generate a modest surplus, ensure the financial sustainability of the micro-finance operation and contribute towards the costs of DESHA development operation

Figure 1: Last five years increasing trend in terms of (Member, Borrower, Savings, Portfolio).

COMPONENTS OF MICROFINANCE PROGRAM

DESHA’s microfinance program is a specially designed program for socio-economic development and poverty alleviation.

The components of this program are:

• Savings Products
• Credit Products
• Micro-Insurance Products

SAVINGS PRODUCTS

DESHA encourages its group members to mobilize savings in order to reduce their dependency on others. Group Savings develops a financial base of the group and they can utilize their savings in income earning schemes. By the way group savings helped them and play active role in family decision-making process to progress. Under this component, DESHA’s members have deposited BDT 104.53 Crore which was 36.51% of their outstanding loan

• General Savings
• Voluntary Savings

GENERAL SAVINGS

General Savings is mandatory for our Microfinance members to save a minimum of BDT 50 per week, enjoying a return of 6% interest per annum. However, this varies based on loan category and collection mechanism. They can withdraw 50% of yearly deposit twice a year. When the loan amount is paid, the member is free to leave DESHA by withdrawing full amount of savings.

VOLUNTARY SAVINGS

Voluntary Savings is not compulsory, this is an optional savings product for DESHA members. Every member has to deposit BDT 10 or more per week in their group meeting. They are eligible to withdraw any amount with interest whenever they want from their available balance. Voluntary Savings members also get return of 6% interest per annum.

CREDIT COMPONENTS

Credit is the most significant component of the microfinance program. The members receive capital through credit facilities to improve their IGA’s and fight against poverty. DESHA has several special designed loan products as follows:

• Buniad (Credit facilities for the Ultra poor people);
• Jagoron (Basic credit facilities for rural and urban poor people);
• Sufolon (Seasonal credit facilities for the farmers);

BUNIAD

Buniad is the most fundamental credit products for the Ultra poor population to build a base economic stability. Under Buniad, DESHA is providing flexible microcredit to the ultra-poor people. Buniad loan helps ultra-poor people to reach the level of moderate poor. Buniad loan ranges from BDT 5000 to BDT 20000. The borrowers have to repay the loan within 45 weekly Installment. Upto June, 2021 DESHA serving 2301 clients with a portfolio of BDT 12,014,069.

JAGORON

Jagoron is designed for the moderate poor of Rural and Urban areas to initiate household-based enterprise development. Under this credit products members can get loan amount BDT 5,000 to BDT 69,000, depending on the economic activity, the borrower’s management capacity, and demand for the product and/or services in the market. The loans are repayable within a year in 46 installments and carry 24% interest on a decline basis. Upto June, 2021 DESHA serving 81763 clients with a portfolio of BDT 1,407,126,382.

SHUFOLON

Shufolon is a unique loan product specially designed tremendous impetus for the investment of different IGAs such as crop cultivation and processing, livestock, fisheries, agro-forestry agro-processing etc. The provision of the loan repayment in a single installment after the sale of the product has made it very popular among the borrowers, especially those engaged in beef fattening and crop cultivation. Members can get credit facilities under this scheme from BDT 50,000 to BDT 1,000,000. Upto June, 2021 DESHA serving 17466 clients with a portfolio of BDT 543,588,604.

Figure 4: Last five years increasing trend in terms of (Member, Borrower, Savings, Portfolio).