Microfinance Programme

These days microfinance operation has become a globally recognized approach for reducing poverty in the developing and least countries. Its role in socio-economic development of the poor people is inevitable as it helps make the capital and access to financial/banking to these people. Bangladesh is the birthplace of microcredit programs of the world. Realizing the importance of microcredit, Nobo Jibon started its savings and credit programs in 1998 to encourage increasing the income of the poor through income generating activities (IGA’s) and micro enterprises. Nobo Jibon provides access to financial services to the poor who are unable to obtain credit from mainstream banks due to lack of necessary assets and referrals. The borrowers, most of whom are women, use these loans to engage in various income generating activities to improve their socio-economic status. Nobo Jibon experiences suggests that only microcredit is not enough to tackle poverty and the poor also need a package of other services like health, nutrition, education etc. for their economic empowerment. Therefore, Nobo Jibon follows an integrated development approach in micro-finance program that aims to alleviate poverty not only through income generation but through an integrated approach. Integrated development is the system of collectively implementing health, economic and education initiatives to strategically meet a community’s development goals.

 

Objectives of the Program:

The specific objectives of the microfinance program are to:

• Make credit available to the poor people having no or very limited access to existing (formal) credit facilities
• Help create self employment and sustainable income to the target  people through income generating activities (IGA) and enterprises
• Ensure livelihood security of the beneficiaries
• Mobilize savings for the poor
• Reducing dependency on moneylenders
• Empower women
• Enhance income of the organization for its sustainability

Program Strategies:

Nobo Jibon follows integrated development approach (IDA) with micro-finance as the center point of development. The important strategies of the program include:

• Upholding MRA rules and regulations
• Diversity products to meet beneficiaries demands
• Special emphasis on sustainability  of its borrowers
• Easy ad close communication among employee as well as between employees and beneficiaries
• Dynamic and forward looking leadership
• Decentralization and delegation of authorities to the bottom line officials
• Participatory process in decision making
• Special provision and emphasis on micro enterprise loan to advance/graduate members for creating employment opportunities
• Implementing cluster based development activities through mobilizing all sorts of local level resources and providing need based information and technologies to the beneficiaries and communities
• Ensuring maximum of savings and promoting micro insurance as the part of borrowers resource mobilization and safety of the disbursed credit
• Special priority on the agricultural development projects
• Strong monitoring and supportive supervision
• Establishing and maintaining Go/NGO/Private organizations and national/international donor agencies
• Special focus on women’s empowerment
• Risk and transaction cost reduction

Operational Areas:

Nobo Jibon is operating its Micro-finance program in Satkhira District through 4 Branches includes:

• Satkhira Sadar
• Kalaroa
• Jhaudanga
• Kazirhat
• Ghona

Major Activities & Services:

• V. O Formation
• Member Admission
• Borrower
• Loan Disbursement
• Savings
• Outstanding
• One time recovery rate (OTR)

Microcredit’s:

Micro-credit is the extension of very small loans (microloans) to impoverish borrowers who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension.

In Bangladesh, the rural poor, particularly the women, are unable to obtain credit from mainstream banks due to lack of necessary assets and referrals. They are mainly dependent on the informal supply from moneylenders who charge an exorbitant rate of interest. Nobo Jibon initiates its credit program to create opportunities for employment and income for the rural poor, specially, the women and reduce the dependency on the moneylenders. Nobo Jibon provides collateral free loan to the poor in both rural and urban areas in a simple, efficient and affordable manner. The borrowers use these loans to engage in various IGAs to improve their socio-economic status.