The loan is intended to allow rural and urban poor households to finance their economic activities and build a strong capital base. General Loans are working capital loans given to poor and disadvantaged households. General Loans range from BDT 5,000 to BDT 45,000, depending on the economic activity, the borrower’s management capacity, and demand for the product and/or services in the market. The loans are repayable within a year in 46 installments.
BURO Bangladesh has developed its micro-enterprise loan for the 15-20% of entrepreneurs capable of graduating from groups, as well as entrepreneurs in the community. Micro-enterprise loans are individual loans that are assessed on the basis of household cash flow, business projections and the reputation of the borrower amongst her/his business peers/in the community. The size of the loan depends on the size of the businesses and the comparative advantages that the entrepreneurs have. With the Micro-enterprise loan borrowers are expected both to provide equity and generate wage labor employment (other than family labor).
Micro-enterprise loans range between BDT 50,000-BDT 300,000, repayable within one-three years in 46-138 installments.
The loan is exclusively for agricultural activities and is designed to increase the farm activities enhancing the livelihood of the poor rural and peri-urban households. The agricultural loan also enhances food security of the households. The loans are disbursed to landless and marginal farmers in organized groups.
Agricultural loans of BDT 10,000 – BDT 50,000 are given for one year, depending on the activity, land-holding etc., repayable in 46 installments.
The loan is intended to serve as a “social security net” and was designed implemented after the Customer Consultative Group Discussions and Client Satisfaction Surveys conducted by BURO Bangladesh. The hand loan is designed to protect customers from shocks to their household economies and the erosion of their financial, physical and social assets. Hand loans are used to finance important festivals (Eid, Puja, Christmas, marriages, etc.), health care and child education. The hand loan is a small loan of BDT 3,000, repayable within 3 months.
In extreme emergencies, such as cyclone and floods, BURO Bangladesh provides disaster relief with support from leading donor agencies. However, instead of offering large-scale or long-term charitable activities, the organization places emphasis on the promotion of self-help and self-reliance of disaster-affected rural communities, encouraging and helping households to stand on their own feet. The disaster loan ranges from BDT 3,000 – BDT 5,000 with low interest rate to be repaid by one year.
The disaster loan is intended to reduce the effect of shocks to the households’ financial and physical assets immediately after natural disasters. The disaster loans meet affected households’ immediate needs for cash and thus to respond to their situation.
Water & Sanitation Loan:
Environmental health concerns continue to be an ominous factor contributing to diseases and poverty. Access to safe drinking water which is also free from arsenic contamination and to hygienic sanitation will reduce sickness and thus increase the labor productivity. The tube-well loan facilitates access to safe water for drinking and other purposes. The sanitary loan is offered to customers seeking to install sanitary latrines in their homesteads. Both the sanitary and tube-well loans range from BDT 3,000 – BDT 10,000 repayable within a year.
BURO MF Program
BURO Bangladesh follows peer group approach. All Groups are with poor women. Each group has one group leader. All members sit together once a week. One field staff discuss different social or local issues, take new decision through information sharing, find business opportunities, collect weekly savings and loan installment, consensciously prepare new loan proposal etc.
Some Special features of BURO Microfinance Program:
- Need based product with scope of diversification
- Customers freedom
- Open withdrawal savings
- Savings withdrawal has no relationship with loan outstanding
- Loan is optional
- Use of commercial money as RLF(RelationShip Fund)
- Strong financial discipline and internal control at branch level
- Branch office automation with user-friendly software (ongoing)
- Operational and financial self sufficiency