October 27, 2020

Micro-Credit Program

HomeProgramMicro-Credit Program

Prantic Unnayan Society (Prantic) has been conducting micro-credit since 2000. It was started in Motijheel Dhaka to provide financial support to the women entrepreneurs popularly known as “Bhatwali“. Bhatwali sells food to various customers ranging from middle class officials working in business organisations, bank and government offices as well as to the employees working in grocery shops, printing press and  industries. In course of time micro-credit has been introduced in Begumganj upazila under Noakhali district in 2003, Prantic started micro-credit from its own fund for example subscriptions from Executive Committee members and well wishers, and surplus from projects. Prantic extended micro-credit program to Khilgaon thana under Dhaka district in 2009 in response to the requests of beneficiaries where Prantic Unnayan Society provided relief during 1998 flood. Considering loan demand from the field, Prantic received a loan of BDT 1.5 million from Mutual Trust Bank Ltd. in January 2010. In the mean time Noakhali district administration requested Prantic management to extend its micro-credit program to Subarnachar upazila which is a river-basin area locally called “char“. Then micro-credit was extended in Subarnachar upazila in 2011. Prantic received registration from Micro-credit Regulatory Authority (MRA) on March 29, 2012. Its registration number is 01852-00758-00613. Prantic conducts micro-credit program with following objectives-

  • To support people for maximum utilization of local recourses and skills.
  • To support families to accumulate capital and create economic self-sustainability.
  • To assist people to develop management skill.
  • To support community to preserve own values, norms and identity with social dignity.
  • To assist potential entrepreneurs to create employment opportunity for the others.

Micro-credit program has three major components. These are (i) Rural Micro-credit (RMC) mainly for poor and vulnerable women, (ii) Urban Micro-credit for urban poor, and (iii) Entrepreneur development both in urban and rural areas.

After successful utilization of BDT 1.5 million loan from Mutual Trust Bank, Prantic received more 5 million on 24 June 2012 and more BDT 10 million from the same bank in three installments during May to June 2014. Progresses of micro credit program by 30 June 2014 is presented below.

  1. No of district: 2 (two)
  2. No of upazila: 5 (five)
  3. No of Villages/mahalla: 37
  4. No of Branches: 4 (four)
  5. No of beneficiaries: male: 121, Female: 1298, Total: 1419
  6. Amount of net savings: BDT 3,978,089.00
  7. No. of loanee: Male: 72, Female: 1164, Total: 1236
  8. Cumulative loan disbursed: BDT 879,79,000.00
  9. Loan outstanding: BDT 18,310,471.00