Micro Finance Program (MFP):
Gram Unnayan Karma (GUK) as a voluntary organization has been implementing different components/products of micro finance program obtaining registration from Microcredit Regulatory Authority (MRA) with a mission to contribute towards poverty reduction, employment creation, education promotion and overall socio-economic empowerment of poor and ultra poor households in its working area by setting up branch offices with efficient manpower. GUK implements different components/products of micro-finance program to support the poor and vulnerable community people for improving their economic status and thus raise their social dignity through involvement in different income generating activities.
GUK has been implementing its Buniad (UPP) from July 2004 with the financial and technical assistance of PKSF in 6 districts with a ceiling of loan BDT 25000. The main objective of this program is to uplift the socio-economic conditions of the ultra poor, illiterate and unemployed community people living below poverty level having no skill and access to resources by providing small loan and IGA based training. During the period under report a sum of BDT. 35,57,91,000/- has been disbursed among 22720 borrowers. Out of this BDT 12,45,47,000/- has been disbursed in agriculture sector among 7983 borrowers, BDT 10,67,37,000/- has been disbursed in livestock sector among 6671 borrowers & BDT 12,45,07,000/- has been disbursed in other sectors among 8066 borrowers. The cumulative loan amount disbursed up to the period under report is BDT 171,56,67,000/- among 173303 borrowers. Out of this BDT 60,04,83,000/- has been disbursed in agriculture sector among 60656 borrowers, BDT 514,47,48,000/- has been disbursed in livestock sector among 51990 borrowers, BDT 60,04,36,000/- has been disbursed in other sector (rural transport, land lease, handicrafts, small business, fisheries etc.) among 60657 borrowers.
Jagoron (RMC & UMC):
Among all the components/products Jagoron/Rural Microcredit/Urban Microcredit Program is wide spread. This Program is being implemented with the financial and technical assistance of PKSF. The main objective of providing Jagoron (RMC & UMC) credit support to the members is to develop their capacity in running individual small IGAs, as well as enhancing knowledge on different social issues like domestic violence, dowry, divorce, effects of early marriage, polygamy, health & sanitation etc. At present this component is being implemented in 10 districts under 41 upazillas through 83 branches. During the period under report BDT. 199,97,52,000/- has been disbursed among 95921 borrowers. Out of this BDT 69,99,43,000/- has been disbursed in agriculture sector among 33572 borrowers, BDT 59,98,76,000/- has been disbursed in livestock sector among 28776 borrowers & BDT 69,99,33,000/- has been disbursed in other sectors among 33573 borrowers. The cumulative amount of loan disbursed up to the period under report is BDT. 874,13,40,000/- among 585700 borrowers. Out of this BDT 305,94,69,000/- has been disbursed in agriculture sector among 204995 borrowers, BDT 262,24,02,000/- has been disbursed in livestock sector among 175710 borrowers, BDT 305,94,69,000/- has been disbursed in other sector (rural transport, land lease, handicrafts, small business, fisheries etc.) among 204995 borrowers.
GUK has been implementing its Agrosor/Micro-Enterprise component (ME) with the financial support of PKSF from July 2003. The main objective of micro enterprise is to foster the growth of small scale enterprises with employment creation so that the entrepreneurs can play a pivotal role in overall economic growth of the country. GUK emphasizes on the members for Rural Micro Credit Program for their enrollment in Agrosor/ME who successfully utilized Agrosor (ME) loans for more than 2 years including new members considering all criteria to be fulfilled for ME loan. The ceiling of ME loan is from BDT 50000 to BDT 500000 only. Out of this BDT 187,51,34,800/- has been disbursed in agriculture sector among 22624 borrowers, BDT 160,72,58,400/- has been disbursed in livestock sector among 19391 borrowers, BDT 187,51,34,800/- has been disbursed in other sector (rural transport, land lease, handicrafts, small business, fisheries etc.) among 22624 borrowers.
The loan is repayable by weekly and monthly installments. During the period under report BDT. 162,42,88,000/-has been disbursed among 17405 borrowers. Out of this BDT 52,24,84,000/- has been disbursed in agriculture sector among 5618 borrowers, BDT 39, 41,55,000/- has been disbursed in livestock sector among 4042 borrowers & BDT 70,76,49,000/- has been disbursed in others sectors among 7745 borrowers. The cumulative loan disbursed up to the period is BDT. 535,75,28,000/- among 64639 borrowers.
SUFOLON (Seasonal loan):
GUK has been implementing its Sufolon (Seasonal) Loan with the financial and technical assistance of PKSF to support the poor and marginal farmers in producing different seasonal crops like potato, paddy, high value crops & vegetables along with livestock rearing such as beef fattening with one time installment after harvesting. The period of Sofolon loan ranges from 3-6 months. During the period under report BDT 10,01,70,000/-has been disbursed among 9358 borrowers. Out of this BDT 5,01,70,000/- has been disbursed in agriculture sector for paddy cultivation among 4398 borrowers, BDT 5,00,00,000/- has been disbursed in agriculture sector for potato cultivation among 5000 borrowers. The cumulative loan disbursed up to the period is BDT 39,71,88,000/- among 94071 borrowers. Out of this BDT 13,90,15,800/- has been disbursed in agriculture sector among 32925 borrowers, BDT 11,91,56,400/- has been disbursed in livestock sector among 28221 borrowers, BDT 13,90,15,800/- has been disbursed in other sector (rural transport, land lease, handicrafts, small business, fisheries etc.) among 32925 borrowers.
Bangladesh is a disaster prone country. Various types of disasters occur every year causing heavy damage to crops, livestock, households and other properties of poor people living in disaster prone areas. The northern part of Bangladesh particularly the riverine area of the mighty river Jamuna, Teesta and Bangali passing through a vast area of Gaibandha, Bogra and Sirajgonj districts submerging nearby communities and island chars. The main objective of SHAHOS (DML) is to support poor and ultra poor members with soft loan for disaster preparedness and post disaster rehabilitation through repair & renovation of households, installation of flood free tube-wells, latrines etc. During the period under report BDT 15,96,000/- has been disbursed to 716 borrowers. The cumulative amount disbursed stands BDT 3,18,88,000/- among 14582 borrowers.
Land Lease Loan under LIFT program:
GUK has provided Land lease loan support among the beneficiaries maintaining terms & conditions of LIFT program for taking land lease, inputs & machineries for crop cultivation in order to earn income as well as create working scope of the potential ultra poor beneficiaries/borrowers for their socio economic development. During the reporting period BDT 5000000/- has been disbursed in agriculture sector among 227 borrowers. The cumulative disbursement of amount stands BDT 5000000/-.
Agriculture Development Program:
From the inception of the organization GUK has been implementing agriculture program activities in order to create working scope and production of different high value crops in the operating area of GUK. In addition to this considering the geographical area specially dry and drought prone area like Porsha upazilla under Naogaon district we are implementing special agriculture program with the active cooperation of Rural Development Academy (RDA), Bogra in order to introduce drought tolerant & short durable rice variety BRRI Dhan-56 & 58 for the economic emancipation as well as to adapt suitable cropping pattern and mitigate lean season food crises as well as for the quality development of agricultural products. We have provided training on vegetable focused profitable cropping pattern among 60000 farmers through 300 batch/training sessions. After training we distributed 60000 year round crop calendar among the farmers. On the other hand based on the demand of the borrowers in different area of GUK we are running agriculture program with the financial & technical support from Bangladesh Bank/JICA and PKSF for providing different skill development on job training among the farmers as well as providing input supply, high value quality seeds, agro machineries, crops production, processing, preservation as well as market linkage with different actors to sell their agricultural products. During the fiscal year 2014-2015 a total number of 56890 borrowers/farmers received agricultural loan on different crops/trades amounting to BDT 1455045000/-.
GUK has been implementing its Housing Loan project with the partnership of Bangladesh Bank. The aim of the project is to ensure the residential facilities for the poor and vulnerable community people through loan support up to BDT. 20000/- to each member for a period of 5 years with 5% service charge on monthly basis.
Loan Insurance Scheme:
The purpose of loan insurance scheme is to cover the risk of credit of borrowers by exempting the remaining balance of loan of the borrower incase of herself or her husband’s/legal guardian’s death during the tenure of loan. During the period under report GUK exempted BDT 1346933/- in-case of deaths of 116 borrowers/husbands/legal guardians under micro-finance program.
Micro-finance Program Progress Review for the period 2014-2015:
GUK Microfinance at a glance
Status of Members and Borrowers (as of June’2015):
The number of members & borrowers was 118276 and 101626 respectively at the end of the fiscal year 2013-2014. During the period under report the number of members increased 23% and the number of borrowers increased 21%. At the end of the fiscal year 2014-2015 the status of both members and borrowers stands 145322 and 123079 respectively. The month wise status of growth of both members & borrowers are shown in the right side graph .
Status of loan disbursement & outstanding at borrowers’ level (as of June’2015):
Sustainability of micro finance program absolutely depends on proper loan disbursement and risk free loan outstanding. As a result of efficient and coordinated efforts of officers and staff, the loan outstanding has increased substantially at the end of the fiscal year 2014-2015 compared to the fiscal year 2013-2014. Whereas the loan disbursement and loan outstanding during the fiscal year 2014-2015 was BDT 3065594000 and BDT 1649972275 respectively with a growth rate of 23% it increased to BDT 4094965000 and BDT 2157033201 respectively at the end of the fiscal year 2014-2015.
Broad sector wise credit distribution:
The success and sustainability of microfinance program depends on proper utilization of loan for the specific Income Generating Activities (IGAs) by the borrowers. Gram Unnayan Karma (GUK) as an MFI has been extending financial assistance to the clinents for successful implementation of different sectoral IGAs. During the fiscal year 20142015 GUK disbursed BDT 1228591000 in agriculture sector, BDT 1023941000 in poultry and livestock sector, BDT 404349000 in small business sector, BDT 309498000 in rural transport sector & BDT 309592000 in other sectors.
An adage goes like ‘savings is strength’. Savings mobilization is an important tool for capital accumulation to undertake any kind of income generating activities. Without savings mobilization it is very difficult to make the microcredit activities sustainable and viable. Actually savings mobilization plays a vital role in running microfinance program anywhere in the world. Considering the importance of savings mobilization GUK from the beginning of its microcredit program started savings mobilization by the enrolled members for their security in rainy days. There are three types of savings namely, mandatory/compulsory savings, voluntary savings & term savings. During the period under report total savings accumulation stands BDT 541559073/-, savings refunded BDT. 337473052/- and the outstanding savings remaining BDT 644809658/-. The average savings per member stands BDT 4712/-.
Under this savings mobilization a member deposits minimum BDT 20 per week to fulfill the criteria of 10% deposit against the loan she/he receives and no member can withdraw any amount from this savings unless her/his membership is cancelled. During the period under report the outstanding of savings stands BDT 465635996.
Under this savings mobilization a member voluntarily deposits minimum BDT. 10 per week to meet the expenditure in case of any emergency arises and can withdraw part of the deposited amount as and when needed. During the period under report the outstanding of savings stands BDT 69738706.
Under this savings scheme all members of Micro Finance Program and employees of GUK can deposit their savings on monthly basis amounting BDT 100 plus for a period of 5 to 10 years term. The interest of deposited savings is 9% for 5 years term and the interest of deposited savings is 12% for 10 years term. The main objective of this savings scheme is to strengthen the financial capacity of members and employees for future safeguard and security of life with particular emphasis on the borrowers to come out of taking repeated loans. It is an established fact that for socio-economic growth and development capital plays the vital role among four factors of production and this savings can help the borrowers to undertake suitable IGA for sustainable development of their livelihoods. During the period under report the outstanding of savings stands BDT. 149434956 (status shown in graph).
Sources of fund (as of June’2015):
The micro credit program of GUK is being funded from different sources like savings of members, loan from PKSF, surplus of service charge, loan insurance fund, organization’s accumulated surplus fund and from internal other sources (status shown in pie chart).
As a routine work GUK prepares its five year business plan on the basis of targeted activities of different components under different projects programs for smooth and efficient running of activities within the stipulate time. The senior management body of GUK is responsible for preparation of the business plan which is letter on reviewed by the Executive Committee of GUK for finalization and execution by the different heads of units. The business plan is prepared following SWOT analysis and on the basis of yearly plan & budget. To accomplish the targeted activities as per plan of operation the management authority regularly reviews and conducts budget variance analysis as and when necessary for adjustment and proper utilization of fund as per work plan and if necessary makes readjustment of budget through supplementary revised budget.
|GUK has planned to achieve the following Targets for the period 2015-2016|
|1||No. of District||14|
|2||No. of Upazila||80|
|3||No. of Total Staff||1588|
|4||No. of Branch||186|
|5||No. of Member||250222|
|6||No. of Borrower||225200|