With a view to alleviating poverty of the disadvantaged people, DESHA launched its Micro Finance program since October 1996 for poor landless people of the project area. DESHA made an agreement as partner organization with ASA in 1998 and with PKSF in 1999. Now the organization has been implementing Micro Finance program both in rural and urban areas. It plays a very important role in the field of poverty alleviation. It also gives special emphasis on immediate and long-term needs of beneficiaries and for further integration in to the development mainstream.
Micro Finance program of DESHA is divided in two components, i.e. micro savings and micro credit, which allows clients an earning capacity while learning to save for the future. DESHA continues to reach its goal of strengthening and empowering the poor woman of the operational area of DESHA through these programs.
Objectives of the Program
The overall objective of DESHA Micro Finance operation is “to achieve sustainable improvement in the livelihood of the rural poor in Bangladesh”.
The other objectives are as follows:
- Establish effective and sustainable savings and credit operation as a necessary economic service for the rural poor whom DESHA serves.
- Ensure that eligible DESHA groups or members obtain ready access to a line of credit to enable them to undertake IGA, according to their needs, choice and capacity to operate.
- Ensure that loans are issued for both on-farm and off-farm activities and generate income and create employment opportunity for them.
- Ensure savings mobilization as an alternative source of financing during emergency.
- DESHA assists group or households to develop the necessary skills and confidence in managing business and financial affairs.
- In addition to provide service, generate a modest surplus, ensure the financial sustainability of the micro-credit operation and contribute towards the costs of DESHA development operation.
DESHA Micro Finance in Last Five years:
|
Particular
|
2019-20
|
2020-21
|
2021-22
|
2022-23
|
2023-24
|
|
Branch
|
70
|
70
|
80
|
84
|
84
|
|
Group
|
6,850
|
6,700
|
6,938
|
7,270
|
7,493
|
|
Member
|
123,636
|
115,312
|
121,901
|
134,936
|
136,759
|
|
Borrower
|
93,708
|
97,559
|
100,774
|
102,717
|
103,850
|
|
Savings (Million)
|
947.18
|
1045.31
|
965.41
|
1380.42
|
1655.38
|
|
Portfolio (Million)
|
2380.36
|
2862.71
|
3701.05
|
5135.71
|
5626.50
|
|
Upazila
|
31
|
31
|
34
|
37
|
37
|
|
District
|
9
|
9
|
10
|
10
|
10
|
|
Staff
|
590
|
586
|
585
|
658
|
659
|
Savings Mobilization
DESHA encourages its group members to mobilize savings in order to reduce their dependency on others. Group Savings develops a financial base of the group and they can utilize their savings in income earning schemes. By the way group savings helped them and play active role in family decision-making process to progress.
Micro-Credit
DESHA’s Micro Credit Program plays a very important role in the field of poverty alleviation. Micro Credit was the area where the changes had the greatest impact. It was noted in the review that the poor results of the credit recovery component of the micro credit program had been having a demoralizing effect on the whole DESHA program, undermining social development efforts.
Recognizing micro credit as a basic need of the have-nots, DESHA launched its micro Finance program with the objective of:
- To make financial services easily available to the poor target people who have no access to institutional credit.
- To generate more income and create long term employment opportunity for the poor and marginal farmers.
- To empower the disadvantaged woman through economic emancipation.
- To operate a sustainable and self-financing micro Finance operation.
Classification of Micro-Credit
Now DESHA provides 11 types financial services.
|
AGROSOR
|
BUNIAD
|
LRL
|
|
AGRO-MDP
|
IAI
|
SDL
|
|
AGRO-SEP
|
JAGORON
|
SUFOLON
|
|
IGA
|
LIFT
|
|
At-A-Glance Savings & Credit Report up to June 2024
Component wise Savings & Loan Outstanding
Savings Balance
|
Component
|
Total Member
|
Savings Balance (Million)
|
|
JAGORON
|
91,676
|
772.80
|
|
BUNIAD
|
10,214
|
61.02
|
|
AGROSOR
|
29,818
|
691.74
|
|
AGRO-MDP
|
1,030
|
20.16
|
|
AGRO-MFCE
|
1,002
|
30.39
|
|
AGRO-RAISE
|
1,016
|
22.42
|
|
AGRO-SEP
|
509
|
4.41
|
|
RMTP-Special-ME
|
15
|
3.75
|
|
IGA
|
1,248
|
46.83
|
|
IAI
|
48
|
0.98
|
|
LIFT
|
183
|
0.78
|
|
SUFOLON
|
|
0.10
|
|
Total
|
136,759
|
1655.38
|
Loan Outstanding
|
Component
|
Borrower
|
Amount (Million)
|
|
JAGORON
|
67,088
|
1853.84
|
|
BUNIAD
|
6,050
|
51.68
|
|
AGROSOR
|
24,687
|
2728.22
|
|
AGRO-MDP
|
629
|
58.28
|
|
AGRO-MFCE
|
990
|
125.44
|
|
AGRO-RAISE
|
883
|
67.66
|
|
AGRO-SEP
|
125
|
11.93
|
|
RMTP-Special-ME
|
15
|
11.94
|
|
IGA
|
1,025
|
72.85
|
|
IAI
|
48
|
3.56
|
|
LIFT
|
183
|
17.05
|
|
LRL
|
194
|
1.82
|
|
SDL
|
15
|
0.06
|
|
SUFOLON
|
1,918
|
622.18
|
|
Total
|
103,850
|
5626.50
|
Agro-based activities under Micro Finance Program
Poultry Rearing
In our country especially at rural area about all families have tendency to rear poultry bird. But only due to crisis of latest technology and proper financial support the activities could not be achieved with satisfactory result. DESHA has provided short training on rearing and support through vaccination program. Moreover Micro-credit support to needy for their activities. Maximum families are selling eggs and birds after their own consumption. This activity is directly helping in nutritional aspects of the family members.
Beef Fattening
Beef fattening is a short-term business but profitable one. Before approximately six months of occasionally festival like as Eid-ul- Fitar and Eid-ul-Azha beneficiaries take loan to purchase adult-calf and after rearing it will sale for meat and earn more money to survive their livelihood.
Aqua Culture
The mini-pond, ditches and other water bodies in the project are brought under fish cultivation. DESHA has provided proper training with the support of expertise from other organizations and govt. departments. DESHA is also assisting the members to collect fish-linger with the support of fisheries expert. Family members are taking fish from their product for own consumption that is helping in nutritional purpose.
Agriculture
To improve rural livelihood options, on and off-farm, we keep farmers and farm workers up-to-date with advances in agricultural techniques, tools and knowledge. Through field-based projects, small and marginal farmers raise their agricultural skills and expand their resources, thereby increasing incomes and raising living standards. PKSF initiated and encouraged to disburse especially agriculture loan to the agro-based small and marginal farmers that is called Agriculture Support Microcredit (ASM). DESHA is going to implement ASM by the help of PKSF in Mirpur, Bheramara and Daulatpur upazills under district of Kushtia. More over, agriculture loan is used in ex-ASA model 5 branches named Arani, Bagha, Malonchi, Putia and Charghat under district of Rajshahi through funded by Bank Asia.
