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.