Micro Finance Operation


Micro Finance Operation

 

Pidim as a reputed Microfinance institution successfully operating its Micro-credit program since 1997 with its partner organization PKSF (Palli Kormo Shohayok Foundation). Pidim is carrying out its micro-loan lending activities through the certification of Microcredit Regularity Authority (L;No: 162) since 16/03/2008. Currently Pidim Foundation is implementing its microfinance program in 11 districts through 70 branch offices. The prime objective of this organization is to ensure steady and continuous economic growth of its members /clients through responsible financing in Income Generating Activities(IGAs) and achieve organizational sustainability through its microcredit programs.

Strategic Plan

 

Pivoting 2M – Mission and Margin

Mission

  • Ensuring continuous socio-economic development of  members
  • Ensuring continuous development of employees.
  • Organizational Sustainability

Margin

  • Increase and optimize Savings, good loan and Current realization rate or OTR for Organizational Sustainability.

A comparative status of Pidim microfinance program by year June 2019- June2020 is illustrated in the following table. 

(Bangladesh Taka in millions)

Sl.no.

Index

June,2019

December, 2020

I.

Activity and Outreach

 

 

1.

No. of Branch Office

54

70

2.

No of Savings & Credit Groups

3500

3945

3.

No. of Group Members

52276

56147

4.

No. Of Borrowers

39435

42272

5.

No. of Staff

421

523

6.

No. of Field Workers( CO,LO)

239

296

II.

Assets and Liability

 

 

1.

Portfolio (Principal Outstanding)

2015.41

2538.68

2.

Members Savings

769.68

911.24

3.

Pidim’s Equity Fund

502.08

585.75

4.

Loan from PKSF

519.50

603.78

5.

Bank Loan

332.85

283.76

III.

Profitability and Portfolio Quality

 

 

1.

Net Surplus

119.01

16.51

2.

Organizational Self-Sufficiency

131.39%

101.42%

3.

Financial Self-Sufficiency

123.03%

101.13%

4.

Portfolio At Risk (PAR)

4.94%

16.54%

5.

On-Time-Repayment (OTR)

98.19%

92.71%

6.

Cumulative Rate of Return (CRR)

99.50%

99.16%

7.

Return on Assets

5.50%

0.59%

 

Loan Products of Pidim Foundation

Sr. No

Loan Products

Highest Loan Ceiling/Amount (Taka)

1

Jagoran (Rural & Urban Micro Credit)

Upto 1 lack

2

Agroshar  (Micro Enterprise)

1 lack 1 thousand to 20 lacks

3

Buniad (Ultra Poor)

Upto 40 thousand

4

Sufalon (Seasonal)

Upto 1 lack

5

Low Income Community Housing Support Project (LICHSP)

Upto 5 lack

6

Sanitation Development Loan(SDL)

Upto 15 thousand

7

Livelihood Restoration Loan (LRL)

Upto 1 lack

8

Sustainable Enterprise Project (SEP)

As per requirement of the project/upto 20 lacks

9

Livelihood Improvement Loan (LIL)

As per requirement of project

10

Microenterprise Development Project (MDP)

As per requirement of project/ upto 20 lacks

11

Livelihood Improvement Loan-Special (LIL-S)

As per requirement of project

12

Skilled youth and empowerment loan

As per requirement of project

 

The loan duration may vary within 6 months, 1 year, 18 months, 36 months and 48 months according to the type of the project. A client can take Sufalon, Sanitation or LIL-S as a support loan along with his/her main loan on the basis of capability and need, which means an eligible member can borrow more than one loan at a time.

Service Charges of Loan Products (Yearly) and Installment Categories

Sr. No

Loan Products

Weekly Installment

Monthly installment

1

Jagoron

12.74%

13.47%

2

Agroshar

12.74%

13.47%

3

Buniad

10%

-

4

Sufalon

-

2%  (Monthly)

5

Low Income Community Housing Support Project (LICHSP)

-

12% (Declining)

6

Sanitation Development Loan(SDL)

-

18% (Declining)

7

Livelihood Restoration Loan (LRL)

-

1.5% (monthly) or 18% (Declining)

8

Sustainable Enterprise Project (SEP)

12.74%

13.47%

9

Livelihood Improvement Loan (LIL)

8% (Declining)

8% (Declining)

10

Microenterprise Development Project (MDP)

12.74%

13.47%

11

Livelihood Improvement Loan-Special (LIL-S)

12.74%

13.47%

12

Skilled youth and empowerment loan

12.74%

13.47%

 

N.B: The Service Charge for Jagoron, Agroshar, SEP, LIL-S, MDP is 24% in the declining method. The current service charges may change at any course of time by the change of government policy.