Micro Finance Program

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Constitutionally Samadhan is accountable to its customers and respective others stakeholders in achieving the organizational and programmatic goal and objectives. Samadhan is providing need based financial and technical assistance to the customers both rural and urban areas under Jessore and Satkhira district to create employment opportunities for sustainable socio-economic development along with empowerment of the women customers.

Features of Financial Products of Samadhan Micro Finance Program:
Micro Credit Program is the core program of Samadhan. It launches to alleviate the poverty and manifest the betterment of the society. Micro Credit Program runs for the poor people to make them self reliant on their earning section. It views to upgrade the economical status of the rural folk. Samadhan stresses on supporting economic activities to generate employment and income to reduce income inequality among the disadvantaged and the poor. Samadhan provides its flexible financial services among almost poor and ultra-poor people through its branch offices in south-west of Bangladesh. Samadhan has been launched the microfinance program in 1991 with its own initiatives and built formal partnership with Palli Karma-Sahayak Foundation (PKSF) in April 1999.

Some Special features of Samadhan Microfinance Program:

  • Product base loan ceiling for program diversification
  • Preferred customers liberty
  • Freedom in deposit/withdrawal of savings
  • No relation of ratio between savings balance verses loan money
  • Adequate financial discipline and internal controlling system are existing as per policy guidelines.
  • User-friendly software (Automation) based MIS and AIS functioning well.

Goal of Micro Finance Program:

Initiate and encourage the deprived people to access in financial support to reduce hunger and poverty by creation of employment opportunities.

Objectives of Micro Finance Program:
The objectives of this program are:

  • Promotion of accessibility of poor people into the financial dealings for income generation activities.
  • Creation of employment opportunities.
  • Organizing the rural poor into groups and accumulation of savings for formation of capital by their own.
  • To make the poor communities self-development in order to save them by themselves from the high interest of the moneylenders.
  • Eradicate hunger & poverty from the society with the functioning income generating fund.
  • Manifest the betterment of underprivileged rural people in the society.
  • To involve the women in development process or generating income for their respective families as a means of empowerment.

To obtained the certain goal and objectives, Samadhan undertakes the following components under Microfinance Programs-

Rural Micro Credit (RMC):    
The loan is exclusively for rural poor and marginalized customers exist in the groups and are designed to increase the small scale farming and off-farming activities in enhancing the livelihood options. The loan provides yearly basis and repaying by 46 installments. Range of loan BDT. 1000 to 29, 000, which depends on the nature of project; production capacity, number of loans received earlier, their previous repayment records and overall performance in the groups & individual levels. The loan interest rate is 25%, which will be calculated following declining method.

Micro Enterprise Loan (MEL):

Under this component Samadhan is providing technical assistance and financial support only to the people both male and female, whose are highly experienced to proper and successfully handle and utilize the loan money. Besides that, skill, potential and success entrepreneurs are also eligible to get without pre experience in work with Samadhan. Micro Enterprise loan provides depending on the nature of economical activity, the borrower’s loan money and implementing project management capacity, and demand for the product and/or services in the market. Generally, the loan duration is maximum of 24 month and grace period is maximum of six month. The loan duration, grace period and repayment schedule are depends upon the proposed project nature and reality, which finalized through the discussion and negotiation between customer and Samadhan proving prior justification. Range of loan BDT. 30,000 to 1,000,000. The loan interest rate is 24%, which will be calculated following declining method.

Seasonal Loan (SL):

The loan is exclusively for increase of seasonal agricultural production only to the customers both male and female exists in the groups enhancing the livelihood of the rural poor. Samadhan provide this loan support for cattle fattening, seasonal vegetables, rice and fish cultivation for a maximum of 09 months period. The loan duration, grace period and repayment schedule are depends upon the proposed project nature and reality, which finalized through the discussion and negotiation between customer and Samadhan proving prior justification. Range of loan amount BDT. 1000 to 50,000. The loan interest rate is 24%, which will be calculated following declining method.

Agriculture Sector Micro-credit:

The loan is exclusively for agricultural activities and is designed to increase the farm activities enhancing the livelihood of the poor and marginalized families. Ultimate objectives of the component is to establish knowledge, skill and capacity of the members on modern agriculture, effective and sustainable agriculture technologies, through which enhancing production, increasing expansion of agriculture sector and livelihood system. Under this sector, the loan money repayment schedule is more flexible. Range of loan BDT. 1,000 to 50,000 which depends on the practical need and situation. The loan interest rate is 24%, which will be calculated following declining method.

Ultra Poor Program Micro-credit:

This is actually little bit exceptional loan than other component loans. It is well known to everybody that general trend of traditional loan is for at least minimum assets holding customers; whose have money-handling capacity, assets and experience. Slightly the Ultra Poor Program Micro-credit is a new initiative and concept of Samadhan to provide this loan only among the comparatively more vulnerable poor and ultra poor families to develop them by reducing hunger and poverty. Poor and ultra poor means, the people whose have no any capacity, assets and experience in handling loan money, here in this component of loan, labor is only the considering factor as assets. First the capacity of the customers are increasing through day to day mentoring, practical and hands on training, then provide loan support with comparatively less rate of interest and have flexibility in installment, savings and payment back the loan money than other loan program considering the reality and limitation of Ultra Poor families. Range of this loan BDT. 1,000 to 29,000. Rate of interest is 20%, which charge in declining method and the entire loan will repay with in maximum of two years.

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