Introduction
Microfinance Program
As in many developing countries, poverty in the country has been an alarming social issue. However, the remarkable progress of the country in poverty alleviation has been recognized by international institutions and Microfinance is an effective tool to elevate poverty. This program forms microfinance group of 15-20 members which is a small financial association. The members of each group are supported financially that they invest in different ventures to generate income. An individual group member is also facilitated with credit facilities that the member can start operating income oriented activity to earn income. This program conducts necessary training and workshop for the group members that they are facilitated with knowledge and skill related mainly to the management of financial activities. The income generating activities carried out by the individual members are Small Trading, Handloom, Handicrafts, Nursery, Vegetable Growing, Poultry and Livestock Rearing, Rickshaw transport, vendors, Fishing etc.
| Group | Members | ||||
|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total |
| 140 | 176 | 316 | 1182 | 2242 | 3624 |
| Borrowers | Savings | Loan Given | Loan Realization | Service Charge | Outstanding | ||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | |||||
| 1193 | 1527 | 2720 | 1076454 | 11840000 | 14414061 | 1904662 | 27924328 |
Case Study: 2
Most. Romija Khatun a housewife, her husband Md. Golam Mostofa, Village: Dakiyapara, PO Gazirvita, Upazilla: Haluaghat, Dist: Mymensingh. The members of her family are six, has three sons and a daughter. The family was in a crisis situation in a lack of food, clothing, housing and necessary domestic goods. She had no cultivable land but 10 decimal lands of the homestead. She had to work at another resident as day labour and suffered many hardships during that time that could not maintain the family with an inadequate income earned as labour. She and her husband could not manage 2 times normal meals in a day for her family. Then she became a member of a Saving Group (named Mitali Saving Group)on June 14, 1997, and completed the literacy course. During that time she met the Credit officer of GBC-CHP, Micro Finance Program. The credit officer made her known about the rules and regulations of the microfinance program. Also, the credit officer highlighted the matter that a saving group member has to deposit 30% against the amount of the proposed loan. So, she started saving tk. 2.00(two) weekly. She also learned about the rules & regulations of the cooperative group from the weekly group meetings.
She attended regularly the group meetings and deposited weekly savings a total of Tk. 900.00(nine hundred). From the weekly group meeting, she acquired more knowledge and skill in rearing milk cows and income-generating activities. After depositing 30% weekly savings within twelve months she becomes eligible to take a loan from the microfinance program rearing milk cows.
Agriculture:
She also participated several times in the small income generation activities and other training related to income-generating activities. Then for the first time, she took a loan Tk. 3000.00 (three thousand) from the microfinance program and was invested in her milk cow rearing. She paid back the loan by monthly instalment. The second time she took a loan Tk. 10,000.00 (ten thousand), and paid back. She continued receiving different amounts of loans such-like 15000, 20000.00 and 25000.00. At present, her loan amount is Tk. 30,000.00 (thirty thousand) and was invested all her loans in rearing milk cows. Now, she has three milk cows and two calves at her home and, her family’s condition is improving day by day. Her two sons and husband are also working in the garment and they are helping her to extend her project of rearing milk cows.
She had lived in the hut, now she purchased forty decimal lands that a mortgage on the lands and built up a GI sheet building. Now her monthly family earning is Tk. 40,000 (forty thousand) which makes it easy to maintain the day to day expenses. Her younger son is studying Bachelor of Arts (BA) and helping her to run the milk cow rearing activities and her daughter is already married. She is very much confident of extending her milk cow rearing activities and encouraging others to join the microfinance group that they will get opportunities to be involved in income-generating activities. Enough income from a milk cow rearing income-generating activities helps a family increase economic status.
She expresses her gratitude to GBC-CHP and heartily requested to continue the activities of the microfinance program for the poor and helpless people. She said with a sweet smile, “I feel happy; with my milk cow rearing that keeps me busy, all the time and I enjoy it so much. The microfinance program greatly contributed towards changing my family life.”
Another Successful Case Study
Abu Md. Zubaiyar father’s name late Abdul Haque, Village: Dhorabunni, PO Dhurail , Upazilla: Haluaghat, Dist: Mymensingh. The members of his family are five, has two daughters elder daughter is studying in class five and his younger are KG. The family was in a crisis situation in a lack of food, clothing, housing and necessary domestic goods. He had no cultivable land but 5 decimal lands of the homestead. He had a small stationery shop and he has to borrow money from a money lender with high interest and suffered many hardships during that time that could not maintain the family with an inadequate income earned as a small stationery shop. He and his wife could not manage 2 times normal meals in a day for his family. Then he became a member of a Saving Group (Dhurail 11/9 Saving Group) on October 20, 2009. During that time he met the credit officer of GBC-CHP, Micro Finance Program. The credit officer made his known about the rules and regulations of the microfinance program. Also, the credit officer highlighted the matter that a saving group member has to deposit 30% against the amount of the proposed loan. So, he started saving Tk. 50.00(fifty) weekly. He also learned about the rules & regulations of the cooperative groups from the weekly group meetings.
He attended regularly the group meetings and deposited weekly savings a total of Tk. 600.00(six hundred). From the weekly group meeting, he acquired more knowledge and skill in small business and income-generating activities. After depositing 30% weekly savings within three months he becomes eligible to take a loan from the microfinance program for his stationery shop.
He also participated several times in the small income generation activities and other training related to income-generating activities. Then for the first time, he took a loan Tk. 20,000.00 (twenty thousand) from the microfinance program and was invested in his stationery shop. He paid back the loan by monthly instalment. The second time he took a loan Tk. 40,000.00 (forty thousand), and paid back. He continued receiving different amounts of loans such-like 50000.00 60000.00 and 70000.00. At present his loan amount is Tk. 100,000.00 (one lace) and was invested all his loans to purchase fertilizer, diesel oil and insecticide for business purposes. Now, he has a small businessman and his family’s condition is improving day by day. His wife is helping him smoothly run his small business.
He had lived in the hut, now he purchased four acres of land and built up a GI sheet building. Now his monthly family earning is Tk. 40,000 (forty thousand) which makes it easy to maintain the day to day expenses. His two daughters are continuing studying and helping him to smoothly run the small business activities. He is very much confident in extending his small business activities and encouraging others to join the microfinance group that they will get opportunities to be involved in income-generating activities. Enough income from a small business income-generating activities helps a family increase economic status.
He expresses his gratitude to GBC-CHP and heartily requested to continue the activities of the microfinance program for the poor and helpless people. He said with a sweet smile, “I feel happy; with the small business that keeps me busy, all the time and I enjoy it so much. The microfinance program greatly contributed towards changing my family life.”