Income Generating Program (IGP)
CEDAR (Concern for Environmental Development And Research) has a vision that came out of social and economic mission of bringing financial service to the poor and the poorest so that they can come out of poverty. As micro credit service provider CEDAR at present is providing micro-credit approximately 11,944 families through its 11 branches in 10 Upazilas of 04 different districts both in urban and rural areas. The Urban areas are in Dhaka, Gazipur and Narayanganj cities. The rural areas are Gazipur, Narshingdi, Narayanganj districts. CEDAR has been providing financial services for disadvantaged communities in Greater Dhaka of Bangladesh since early 1996. The program has evolved over decades and presently offers services in mobilization of savings, micro-credit, enterprise credit, asset creation specialized services for ultra poor households by technical and financial assistance of PKSF. These services are provided through groups, most of the groups and their members are rural women.
CEDAR has started micro credit through replication of PKSF model in the year 1996 in one of the Dhaka city slums, since then it has served 11,944 families through 9,719 Borrowers and had disbursed Tk. 11,84,31,000/- as loan till October 31, 2018. Present outstanding loans stands at Tk 20,18,47,249/- and total savings deposit of Tk 7,16,31,166/-. A successful Micro-finance program starts with clear objectives to set up permanent institutions with systems designed to provide standard financial service on a long-term sustainable basis. This objective implies following key things: good quality financial products and services, delivery by an appropriate institution on a profitable basis to satisfy clients who continue to value and use those services. Quality of financial services means, which would meet the needs of the poor community and not only the needs of financial institution.
Under the Income Generating Program (IGP) each group has 15-30 members. They receive an orientation on financial procedures and discipline. The savin gs by each member of the group starts from the inception of group formation. They usually save taka 25 a week. Following this process of group discipline and savings in about 7 days time the members start receiving micro credit. Each member can borrow taka 20,000 to taka 49,000 as micro loan.
The successful micro borrowers can apply for enterprise credit. Enterprise loan is a service product to assist group members to set up larger scale economic activities which result in enhanced income and employment opportunities. The amount of the enterprise loan ranges from taka 50,000.00 to taka 10,00,000.00. Duration of July 2018 to October 2018 the information of Income Generating Program (IGP) has been given bellow:
| SL | Total Branches | Total Beneficiaries | Number of Female Members | Number of Male Members | Total Savings | Number of Borrowers | Total Loan Disbursed | Total Outstanding |
|---|---|---|---|---|---|---|---|---|
| 01 | 11 | 11944 | 11221 | 723 | 71631166 | 9719 | 118431000 | 201847249 |
Income Generating Program (IGP) Services
Savings :
The objective of savings fund mobilization is to create regular savings habit among the clientele groups and to form the capital base of their own. A group savings fund is generated through a mandatory savings regime of minimum 25 taka by each group member every week. The savings fund earns an interest of 6% annually (equaling that of bank interest). The savings fund by the Income Generating Program (IGP) members are as follows (July to October 2018) :
| SL | Name of Branch | Number of Borrowers | Savings | ||||
|---|---|---|---|---|---|---|---|
| Female | Male | Total | Mandatory Savings | Voluntary Savings | Total Savings | ||
| 01 | Tongi | 1207 | 73 | 1280 | 7716756 | 2500431 | 10217187 |
| 02 | Arikhola | 713 | 14 | 727 | 3052935 | 1121208 | 4174143 |
| 03 | Jamalpur | 1624 | 0 | 1624 | 6538508 | 1568054 | 8106562 |
| 04 | Ghorashal | 1182 | 30 | 1212 | 5063292 | 2095290 | 7158582 |
| 05 | Madhobdi | 1100 | 0 | 1100 | 4416892 | 965604 | 5382496 |
| 06 | Gopaldi | 746 | 2 | 748 | 2033574 | 1168554 | 3202128 |
| 07 | Bishnandi | 576 | 0 | 576 | 1000620 | 1587004 | 2587624 |
| 08 | Araihazar | 1884 | 32 | 1916 | 10384129 | 4429546 | 14813675 |
| 09 | Rupganj | 808 | 19 | 827 | 2919355 | 1385452 | 4304807 |
| 10 | Narayanganj-1 | 1248 | 553 | 1801 | 7230322 | 3896022 | 11126344 |
| 11 | Narayanganj-2 | 133 | 0 | 133 | 381509 | 176109 | 557618 |
| Total: | 11221 | 723 | 11944 | 50737892 | 20893274 | 71631166 | |
Micro-credit:
A group becomes eligible to receive micro-credit support after 15 days of group formation, provided group activities during the development stage has been completed satisfactorily. The objective of micro-credit support is to provide the members with financial capital needed for income generating activities that would enhance the members’ livelihood and create employment in the rural areas. Credit is disbursed in a scheme basis among the group members. A loan scheme is formed comprising one member from each sub-group. Credit is provided to schemes in priorities chosen by the members themselves and disbursement to any member of the concerned scheme is subjected to satisfactory repayment of the sub-group members who received loan in earlier loans. A 25% declining rate of interest is charged against disbursed credit. Members pay back their loan along with service charge in 46 weekly installments. The loan amounts range from Tk 20,000.00 to Tk 49,000.00. Information of disbursed loan has been given bellow (July to October 2018):
| SL | Name of Branch | Number of Beneficiaries | Loan Disbursed (Taka) | ||||
|---|---|---|---|---|---|---|---|
| Female | Male | Total | Urban Microcredit | Rural Microcredit | Total Taka | ||
| 01 | Tongi | 227 | 11 | 238 | 0 | 8289000 | 8289000 |
| 02 | Arikhola | 152 | 1 | 153 | 0 | 4625000 | 4625000 |
| 03 | Jamalpur | 342 | 0 | 342 | 0 | 10918000 | 10918000 |
| 04 | Ghorashal | 254 | 5 | 259 | 0 | 8284000 | 8284000 |
| 05 | Madhobdi | 280 | 0 | 280 | 0 | 9220000 | 9220000 |
| 06 | Gopaldi | 189 | 0 | 189 | 0 | 6250000 | 6250000 |
| 07 | Bishnandi | 259 | 0 | 259 | 0 | 8183000 | 8183000 |
| 08 | Araihazar | 440 | 4 | 444 | 0 | 16265000 | 16265000 |
| 09 | Rupganj | 175 | 2 | 177 | 0 | 6049000 | 6049000 |
| 10 | Narayanganj-1 | 238 | 107 | 345 | 0 | 12229000 | 12229000 |
| 11 | Narayanganj-2 | 75 | 22 | 97 | 0 | 3353000 | 3353000 |
| Total: | 2631 | 152 | 2783 | 0 | 93665000 | 93665000 | |
Micro Enterprise Credit :
Small Enterprise Loan is provided with the aim of increasing the diversity of economic activities in the rural areas by supporting economic enterprises. These are mostly non-traditional activities and assist in increasing employment and income of the member households. The enterprise loan ranges from Tk 50,000 to Tk. 1,000,000. The enterprises include baby taxies, taxi cabs, pickups, power tillers, workshops, small processing plant, shops, pharmacies, boats, fisheries, horticultures, nurseries, small factories etc. The information of Micro Enterprise Loan has been given bellow: July to October 2018
| SL | Name of Branch | Number of Beneficiaries | Loan Disbursed (Taka) | ||||
|---|---|---|---|---|---|---|---|
| Female | Male | Total | Urban microenterprise | Rural microenterprise | Total Taka | ||
| 01 | Tongi | 39 | 3 | 42 | 0 | 6390000 | 6390000 |
| 02 | Arikhola | 11 | 1 | 12 | 0 | 1250000 | 1250000 |
| 03 | Jamalpur | 25 | 0 | 25 | 0 | 2980000 | 2980000 |
| 04 | Ghorashal | 10 | 1 | 11 | 0 | 1050000 | 1050000 |
| 05 | Madhobdi | 24 | 0 | 24 | 0 | 2040000 | 2040000 |
| 06 | Gopaldi | 0 | 0 | 0 | 0 | 0 | 0 |
| 07 | Bishnandi | 0 | 0 | 0 | 0 | 0 | 0 |
| 08 | Araihazar | 51 | 2 | 53 | 0 | 4426000 | 4426000 |
| 09 | Rupganj | 19 | 3 | 22 | 0 | 2330000 | 2330000 |
| 10 | Narayanganj-1 | 6 | 15 | 21 | 0 | 3750000 | 3750000 |
| 11 | Narayanganj-2 | 2 | 2 | 0 | 550000 | 550000 | |
| Total: | 185 | 27 | 212 | 0 | 24766000 | 24766000 | |
Loan Insurance
If a group member dies while being a borrower, the deceased’s family will receive the same amount or highest tk. 50,000 of borrowed money (principal loan) as insurance. This measure assists the family members from encountering financial crisis/burden.
