06 Sep, 2020
Suraiya aged 38 lives in Gulfartek village under Pubail Thana of Gazipur district. Suraiya cultivated bottle gourd, cauliflower and mustard on leased landsRead more
The Economic Development Program of MSS, which is widely known as Women’s Credit Program, is an important tool for poverty alleviation and empowering the poor. It is a mechanism to make resources available to those who did not have access to resources from institutional sources such as the commercial banks. MSS launched its first urban micro credit program in 1984 styled as “Small Credit Fund” (SCF) aiming to encourage income generating activities in the non-formal sector for poverty alleviation and empowering the disadvantaged segment of the society. In that program urban poor male and women were the target group. On the basis of the good performance shown by the women members in the SCF, MSS started Women’s Credit Program (WCP) in 1989 as an integrated savings and credit program. WCP was the first urban replication of the famous Grameen Bank model in Bangladesh.
Based on successful operation in the preceding years and to retain the overall growth of the organization, MSS-WCP management decided to carry on its expansion plan of microfinance program in more urban and rural areas by enrolling more distressed women, making credit available to the urban and rural poor enabling them to become engaged in different income generating activities, which in turn, enables them to become economically self-reliant. Through this process, MSS proved itself a cost effective, sustainable, reliable financial service for employment and income generating activities for the poor, while still achieving a recovery rate of above 99% since 1989.
This is the starter and largest loan product of WCP which any WCP member can access. In 2022-2023, a total of Tk. 5309.5 million was disbursed among 72,059 members with an average loan size of Tk.73,683. At the end of June 2023, total general loan (Jagoron) outstanding was Tk. 3304.60 million, achieving a recovery rate of 98.99%.
The ME loan is given to the WCP members who are willing to invest in a running business to enhance income and generate employment. This loan size ranges Tk. 295846, repayable within one or two years by weekly /monthly installment. In 2022-2023, a total of 8,486 members received Tk. 3407.54 million ME loan in rural and urban areas and an amount of Tk. 3011.72 million was realized, maintaining outstanding at Tk. 2268.124 million, attaining a recovery rate of 98.07%.
This loan is given to the ultra-poor people who don’t have permanent dwelling, access to health, education and loan facilities and are economically deprived such as widows, abandoned women, day laborers, divorcees, etc. In 2022-2023, in total Tk.80,000 was disbursed among 3 borrowers and an amount of Tk.635257 was realized, maintaining outstanding at Tk. 363938, achieving a recovery rate of 99.79%.
This loan amount is given to the members to invest in agriculture sector to advance and boost agricultural production. In 2022-2023, Tk. 2068.63 million was disbursed among 27,547 borrowers and an amount of Tk. 2168.897 million was realized, maintaining outstanding at Tk. 1250.937 million, accomplishing a recovery rate of 98.58%.
This soft loan is given to the rural poor people to build low cost environment friendly house. Since signing the loan agreement with Bangladesh Bank, MSS as of June 2023, disbursed housing loan of Tk. 12.61 million among 97 target people and realized Tk. 6507150 maintaining outstanding Tk. 15025638.
Bangladesh is a land of agriculture where more than 70 percent people live in rural areas who are largely dependent on agriculture and agri-business for their livelihood. To strengthen food security and reduce poverty MSS, in 2005, launched Small and Marginal Sized Farmers Agricultural Productivity Improvement and Diversification Financing Project (SMAP) with the objective of increasing agricultural output, promoting agro-business, facilitating agro-based services and creating sustained employment opportunities. This is a loan fund given by Japan International Cooperation Agency (JICA) to Bangladesh Bank from where MSS is receiving the fund through an agreement with Bangladesh Bank. To achieve the objectives, the technical team of MSS is imparting training to its staff and WCP members.
In 2022-2023, a total of Tk.955.45 million loan was disbursed among 11,620 members of which Tk. 451.25 million, Tk.246.35 million and Tk.4.07 million respectively were disbursed for agriculture, livestock and purchase of agro-machineries.
This is an interest free loan given to the beggars to motivate them to get involved in income generating activities towards leading a dignified life in the society. This project has been developed based on the experience of Sangrami Sadashya (struggling member) of Grameen Bank. Initially, MSS agreed with Grameen Trust to provide loan facilities to 1000 beggars.
MSS-WCP makes conscious efforts to develop savings habit among its members so that they can utilize the money during their emergency needs. MSS maintains four types of savings:
To develop savings habit, the members of MSS-WCP are encouraged to save asking them to deposit a fixed amount of money from their earnings every week. In 2019-2020, a total of Tk. 1869.59 million was collected under this savings scheme and Tk. 89.15 million interest was paid on savings during the same period. The cumulative savings deposit was Tk. 15,062.09 million and cumulative savings withdrawal was Tk. 13,165.98 million having a balance of Tk. 1896.10 million.
Monthly Voluntary Savings
To enhance saving opportunities MSS introduced monthly voluntary savings with premium benefit. The members deposit savings and are able to withdraw a certain amount from there giving prior notice. In 2019-2020, a total amount of Tk.42.72 million was collected under this savings scheme and Tk. 5.09 million interest was paid on savings during the same period. The cumulative voluntary savings deposit was Tk. 257.17 million and cumulative savings withdrawal was Tk. 186.28 million having a balance of Tk. 70.89 million.
Yet another savings scheme is fixed savings deposit for better return after a certain interval. The members are encouraged to deposit a certain amount at a time for 1 year to 5 years for getting higher return. In 2019-2020, a total amount of Tk. 52.37 million was collected under this savings scheme and Tk. 3.35 million interest was paid on savings during the same period. The cumulative savings deposit was Tk. 348.29 million and cumulative savings withdrawal was Tk. 275.56 million and cumulative balance stood at Tk. 72.74 million.
MSS Monthly Savings
This is a monthly savings scheme through which the members deposit minimum Tk. 100 for 5 years, 8 years and 10 years and get back a fixed amount after the maturity of the term with a considerably higher return. In 2019-2020, a total amount of Tk. 83.99 million was collected under this savings scheme and Tk. 3.86 million interest was paid on savings during the same period. The cumulative savings deposit was Tk. 155.62 million and cumulative savings withdrawal was Tk. 54.69 million retaining a cumulative balance of Tk. 100.93 million.