Savings Mobilization

Savings Mobilization:
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/-.

Mandatory Savings:
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.

Voluntary Savings:
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.

Term Savings:
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).