PBK microfinance program is dealing with the poor of Bangladesh, to limit the struggle of the poor with poverty. Microfinance has given the opportunity to the bottom of the pyramid especially the women to prove that they too have the capacity to utilize money in economic activities and can generate substantial income initiating the way out of the poverty trap. It has brought in the hands of the unbanked people money which was generated by their own savings. The objective was to provide the poor with credit who had plenty of investment prospects around them except the capital. Today, the term “Microfinance” represents a more dynamic tool for economic development featured with new feathers of inclusiveness. It is moving towards a more improved goal. PBK promotes microfinance as a necessary means for providing a sustainable livelihood to the poor and emphasizes on adding value through skill training, value chain and market linkage of the clients. PBK microfinance program periodically reviewed and resigned its financial products in terms of savings and credit products to meet demand based diversified and inclusive products for different segments of poor people.
PBK microfinance program operates through 31 branch offices providing services to the target clients for their poverty reduction and institutional sustainability are the main focus of the program. Credit operations are carried out through a revolving loan fund. The RLF consists with member savings, retained earnings, and loan from PKSF.
PBK microfinance program provides small loan to the borrowers at the beginning and increase size of the loan when the family makes progress to develop their income generating projects/activities.
Microfinance program is moving gradually towards operational and financial sustainability. Similarly, over the time financial capacity of MFP clients have also been increasing through this program. Particulars
Microfinance Program (MFP) has been operating in five different districts in Dhaka division of Bangladesh. The operational program of MF is divided into four areas in the five districts. One AM is operating with eight branch offices. One AM with an Area Accountant supervises all the eight branches. The area office is located in a suitable branch office.
A total of 2,353 Samities were reorganized in FY 2016 against 2,197 in FY 2015. The current year’s members are 36,522 as compared to 37,045 in the preceding year. A total of 152 Unions were covered. A total of 31 Branch Offices are now operating.
A total of 36,522 members had access in the financial services up to the current year compared to 37,045 members in the preceding year resulting in 523 decreases in members’ outreach due to re-organization of the program.
Presently, MF has two savings products called a) general savings and b) voluntary savings. All savings are weekly savings. On the other hand, it has seven loan products called Jagoron, Agrosor, Sufolon, Buniad, SIGA, LILP and ACLP loan.
PBK promotes microfinance for sustainable livelihoods for the low income people including Hoar people who are extremely poor in Bangladesh. To modernize the total operation and foster accountability in all levels an automation system installment is working in all the 31 branches.
Most loans are disbursed in small business, land purchase, small cottage, cattle rearing and transportation sector in relation to other sector.
In Bangladesh the livestock sector is a potential employment sector for small and marginal farmers as well as poor familes especially beef fattening, milch cow and goat/sheep rearing. Livestock health care services including vaccination and de-worming services, etc. are not available in rural / remote areas. In order to increase the growth, productivity and investment in the livestock sector, PBK through its MF and SD Programs implementing livestock insurance. Under this policy, one percent premium is taken on purchase value to compensate the owner if the cattle died. From the learnings of the livestock insurance and for betterment of farmers, PBK has developed an insurance policy in 2014 by following the PKSF policy. Through this insurance policy, the livestock farmers are receiving vaccination and de-worming services, and providing training on fattening to all clients. Particulars