Micro credit is the extension of very small loans (micro loans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not considered bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. Micro credit is a part of microfinance, which is the provision of financial services to the very poor; apart from loans, it includes savings, microinsurance and other financial innovations. Micro credit is financial innovations which originated in developing countries where it has successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases, begin to build wealth and exit poverty. Due to the success of micro credit, many in the traditional banking industry have begun to realize that these micro credit borrowers should more correctly be categorized as pre-bankable; thus, micro credit is increasingly gaining credibility in the mainstream finance industry and many traditional large finance organizations are contemplating microcredit projects as a source of future growth. Although almost everyone in larger development organizations discounted the likelihood of success of microcredit when it was begun in its modern incarnation as pilot projects with ACCION and Muhammad Yunus in the mid-1970s, the United Nations declared 2005 the International Year of Micro credit.
Definition of NGO:
A non-government organization (NGO) is an organization that is not part of a government and was not founded by States. The phrase nongovernmental organization came into use with the establishment of the United Nations in 1945.
Types of NGO:
There are also numerous classifications of NGO’s. The typology the World Bank uses divides them into Operational and Advocacy. The primary purpose of an operational NGO is to design and implementation of development-related projects. The primary purpose of an Advocacy NGO is to defend or promote a specific cause. These organizations typically try to raise awareness, acceptance and knowledge by lobbying, press work and activist events.
History of the TMSS:
Thengamara Mohila Sabuj Sangha (TMSS) is a National NGO, which is working for poverty alleviation, Socio-Economic Development and empowerment of Women. The beggar women of Thengamara village of Bogra district established this organization in 1980; while most of the people of the area used to live hands to mouths. Thengamara village or the Head Office of TMSS is Located at about 6 kms away towards the north of Bogra town and by the side of Bogra-Rangpur highway. Within a few days of its inception, the management of TMSS came under the prudent and dynamic leadership of Prof. Dr. Hosne-Ara Begum. Since the beginning, TMSS believes that family is the focal point of social development and it always gives emphasis on capacity building of absolute poor and hard-core poor and also of vulnerable women groups in the society and utilization of untapped local resources for poverty reduction. By this period 1.9 Million women were organized into groups within its operational area (throughout Bangladesh covering 63 districts) and brought them in the mainstream of development process and help them to gain self-reliance through designing and implementing of innovative Projects. TMSS provides services to the target groups through establishment of Institutions and emphasizes on Institution-building to strengthen the development interventions for the poor. The target beneficiaries are women and mostly from ultra-hard-core and hard-core poor families having no or below 50 decimals of land in households. The organization forms groups with the women who are living below the poverty line. For institutional building it has formed various groups and providing different support services for strengthening these groups. The support services include training on Group Formation, Formation of Professional Groups/Society, Organizational Development & Management, Legal Coverage, and Phasing-out & Referral Services.
Happy and prosperous Women in the Society
TMSS provides its best efforts in bringing the poor Womenfolk's living conditions at a dignified level in the family and society through their capacity building, optimum use of their own/available resources,
participation in development activities and fulfillment of their legitimate rights.
Let family be the center of women development
Prime objective of TMSS is to develop the present socio-economic conditions of the targeted beneficiaries through execution of their decision and using unutilized local resources of this area. The specific objectives are; - Organization building with the targeted beneficiaries; - Raising awareness and develop human resources; - Remove illiteracy through education & training; - Skill development and create employment; - Local fund development by the beneficiary; - Arrange necessary credit facilities’; - Provide technical and financial support for income generating activities; - Remove gender disparity; - Improve health status for children & women; - Identification & Utilization of Local Resources; - Ensure development of Agriculture, Forestry, Livestock, Environment, and Sanitation; - Increases GO, NGO co-ordination and cooperation; - Disaster management & rehabilitation work; - Conduct social/action Research; - Capacity building of local partner, NGO's etc which are working for women empowerment; - Promote participatory planning for beneficiaries; - Ensure good governance.
Scope of the Study
This report mainly focuses on the Micro credit management of Thengamara Mohila Sabuj Sangha (TMSS). The proposed study will show the activities by which they play an important role in economic development of the country.
Rational for Selecting TMSS:
Thengamara Mohila sabuj Sangha (TMSS) was chosen for the study because of its proximity and gathering work experience with the very challenging job, also for the increasing popularity of micro credit as a useful tool for developing living conditions of poor people.
Objective of the Study:
The main objective of this study is to identify and analyze the microcredit management system of this organization. Analyzing the various activities of a NGO is a well-established tool to identify the role in economic development of the NGO.
Data Collection Methods:
Method of collecting information is one of the important matters to conduct a survey smoothly. Because by searching adequately, we can get relevant information about the subject matter. For our present study, we have been collected data basically from two sources; 1. Primary Sources: Primary sources are bared on interviews, conducted for different group of respondents i.e. management and beneficiaries. 2. Secondary Sources: The source of secondary data is the official record of the TMSS and their web pages. I have also collected some published and research report, books, journals, articles to fill up the information gap.
Source of Data Collection:
To prepare this report I used the following sources of data collection; 1) Direct interview and 2) Personal communication.
It will help me to get a clear idea about the NGO and its micro credit management system. which is most important to take the decision about the NGO in the country. 6) Secondary data is not reliable for the proper figure of the NGO.
. practical performance in the formal stage become very difficult. Besides the above. After completing the institutional experience. 5) Lake of actual data about the NGO. These constraints narrowed the scope of the real analysis.
Justification of the Study:
This study will have both practical and academic value. 1) Lack of availability of the data.5
1. Due to Secrecy. They provide information about NGO operations. Personal Communication: I have gathered data through personal discussion with the officers of different level employees of the TMSS. 8) Inappropriate method of data collection. 2. we have to face some other limitations are. I have just completed the formal education stage. 4) For the reason of confidentiality. officers and staffs of the TMSS. some useful information can not be expressed in this report.
Limitations of the Study:
This internship report is my first assignment outside our course curriculum in my practical life. On the other hand the findings of the study will help to take appropriate actions and steps for the development of the NGO. Publications fats and figures are not available. 3) Sufficient records. Direct Interview Methods: I have collected information and data by direct interviewing of the executives. 2) Up-to-date information was not available. the authority of the NGO does not able to provide the accurate information. 7) Lack of availability of the information about the NGO in online. So in Performing this report our lack of proper knowledge greatly influenced in this performance.
9 Million 17775 270 63 400+ Acres 650+ Acres 2707 22612
No. 761762313 Tk. of Total Credit Staff Credit Beneficiaries Families Loan Borrowers Total Savings Amount Savings Balance Loan Disbursed Loan Outstanding 46282 663 3055 958467 463543 Tk. 1138084334 Tk. 2109180944 Tk.6
TMSS at a Glance
Population Covered Villages & Slams Covered Thana Covered District Covered Water-Body Under Fisheries Land Under Agriculture Union Covered Village Organizations (Para Group) 1. 1798864334
. Groups Number of Branches No.
Livestock Poultry Social Forestry Agriculture Horticulture AgroForestry Fisheries Handicraft Producers Small Traders Small Enterprises Api Culture Others 48000 45050 39165 58899 175 1120 2240 8500 12250 16749 109 40022
Consultants(Full Time) Legal Adviser Resource Person Community Veterinarians Community Health Workers Community Nutrition Organizer Nutrition Women Workers 13 15 50 28 149 218 23551
Poultry Workers Teachers(Non Formal) Teachers(Formal) Staff Volunteer Adolescent Voulnteer Doctors (MBBS) Full time Contract Staff Personnel Community Nutrition Promoter Specialized Doctors (Part time) Medical Assistant Staff Nurse X Ray Man Pathologist Paramedics Health Worker Clinical Assistant
390 63 53 4703 7000 138 15 93 2141 08 48 20 02 02 49 49 49
Branch Offices Area Offices Zonal Offices 663 65 17
Silk Reeling Centers Nurseries Rice Husking Mill 04 01 01 01 26 01
Health Centers Diagnostic Laboratories Training & Resource Centers Community Nutrition Centers Sub / Satellite Clinic Community Hospital (RCH) Formal School Vocational Training Center Non Formal Education Center Libraries Handicraft Production Ceters Primary School Head Office Foundation Office
31 01 01 2141 65 01 01 01 130 02 4 01 01 01
Program Support Enterprises
Poultry Farms Poultry Hatcheries Fish Hatcheries Sericulture.
Shops (UTPADON outlet) Printing Press Food Project Rural Market Women Market Packaging Industry Departmental Store Seed Sector (R&D) Pharmacy Restaurant Training Venue & Dormitory Agriculture Farm Business Service Center Demontration Production Pond Agricultural Field Forest (TDS) Export (Earning) Sand Field 09 01 01 02 01 01 02 01 01 03 06 02 02 109 300 Acre 95 Acre 11 41.
TMSS Medical Training Institute (TMTI) 3.9.1964. Regn. 61/04). Kinder Garten School
TMSS is governed by its registered Constitution. Women and Children Affairs Directorate.Hosne Ara Degree College 6. Pundra University of Science & Technology (PUST) 5. The General Body Members are the Chairperson of the Village Organization of TMSS. dated 10. framed out Policies.
Legal Status (Registration Authorities):
TMSS is registered by the following govt. 2.10. No.04. Apart from these.5 Dated 16. a 15 member Executive Committee (elected every after 3 years by direct voting of General Body Members & Regular Subscriber Members) ensures the proper governance of TMSS on behalf of the women members. 1494.11
1.1980. Orphanage 8. Decisions of AGM and the working procedures of the Peoples’ Republic of Bangladesh Voluntary Social Welfare Agencies (Registration & Control) Ordinance of 1961 and Foreign Donation (Voluntary Activities) Regulation Ordinance of 1961. Rules & Regulations. 717/80/885 (106) Dated 8. 3. Social Welfare Department (At present Social Service department)..1985. TMSS Technical Institute (TTI) 2. Regn.11. Health and Family Planning Directorate (Last renewed dated 11. Departments / Directorates for carrying out different types of activities for socio-economic development of its beneficiaries. 1. Ansar . Madrasha 7. Regn.09. TMSS Medical Institute of Research & Technology 4.
5.1987. Out of them about 2/3 are the beneficiary of this organization.10. Govt. Teacher Retired Associate Professor. At present there are 1240 members in the general committee (all of them are women). Dilara Iqbal Mir ViceChairperson
Mrs. Regn. Social Worker & Life
Mrs. General Committee: General Committee is considered as the foundation of TMSS body.
TMSS is a people's organization and it always strictly emphasizes on participatory and democratic approach for running organizational activities. Regn. DNC 0036. Minati Akter
.2002). Mahmuda Chairperson Begum Rtn. Executive Committee: TMSS Executive committee consists of 15 members and they are elected by the general committee in every 3-year. The EC also contributes in formulating TMSS policies and provides consultancies and guidelines to run the organization. 2. Department of Narcotic’s Control. Azizul Haque University College. Dated 05. If necessary. it can hold special meeting on emergent matters as and when required.12
4.10. Dated 01/01/2005. This committee consists of the following positions: Sl. # 01 02 Name Member's of Position Main profession Social Worker & Ex. Prof. External Resource Division (At present Economic Relations Division) (Renewed Dated 05. 1. Bogra. DSS/FDO/R-241. Mainly this committee is responsible for appointing the Executive Director and selecting the CA Farm for auditing TMSS financial position. The general committee elects the Executive Committee and meets once in every year.
Bogra. Majhira Union Parishad. Nasima " Akter (Joly) Mrs.13
Member. Hosne. Social Worker & Chairperson of Palashbari Sromojibi Mohila Sakty. Dr. Member. Shamima Assistant Begum Secretary Mrs. Social Worker & Daughter of Late Fatema Bewa. Bogra. Begum Mrs.MemberAra Begum (by Secretary Designation) Rtn. Dhaka. Social Worker. Hosen Ayesha Treasurer Social Worker Ex. Begum Mrs. Bogra. Mira Begum Mrs. Bogra Unit.
Mrs. Teacher. Founder of TMSS. Social Worker. Bogra. Senior Project Coordinator The Hunger Project. Social Worker Executive TMSS. Begum Mrs.
Prof. 04 Mrs. Begum Mrs. Khatemun Adarsha Shishu Niketon. Member of Gokul Union Parishad. Thengamara. Mohishbathan Girls' School Teacher.P Rotary Club of Bogra Karotoa. Red Crescent Society. Director. Begum
Aysha " Jharna "
Shahida " Afroza "
. PP Asia Member Akkas (Rani) Prof. Lutfunnesa " "
Organogram of Thengamara Mohila Sabuj Sangha (TMSS)
Dhaka Bangladesh Shishu Adhikar Forum (BSAF) Bangladesh Women Chamber of Business & Industries (BWCBI) Bogra Metal Engineering Entrepreneurs Group (BMEEG) Coalition of Environmental NGOs (CEN) Coalition of Urban Poor (CUP) Community Development Library (CDL) Commonwealth Liaison Unit Bangladesh (CLU-B) Coordinating Counsel of Human Right Bangladesh (CCHRB) Credit and Development Forum (CDF) District NGO Coordination Committee (DNCC) Federation of NGO`s in Bangladesh (FNB) Forum for Participatory Education and Development (FPED) Forum for Regenerative Agriculture Movement (FORAM) International Association for Volunteer Effort (IAVE) Inter-fish Forum International Water Association (IWA) International Women Day Celebrating Committee (IWDCC)
Aquaculture for Fish Development Forum (AFDF) Association of Development Agencies in Bangladesh (ADAB) Association for Land Reform and Development (ALRD) Association for Women in Development (AWID) Bangladesh Human Rights Commission (BHRC) Bangladesh Nursery Owner`s Association Bangladesh Salish Network.
Rangpur Rural Development Academy (RDA) UN Commission for the Status of Women (CSW) United Nation Information and Education Services (UNIES) Women Tribune Center World Wide Network (WWN)
Present Development Partners:
Asian Development Bank. Engineering Department (LGED) Ministry of Women Children’s Affairs Ministry of Health Mennonite Central Committee (MCC) National Democratic Instituted (NDI) &
. (ADB) Australian High Commission British Council & NICARE Bangladesh Bank Canadian High commission /CIDA Local Govt.16
ACCION Agricultural Development Network (ADN) Amnesty International Asia Pacific Agroforestry Network (APAN) Bangladesh Agriculture Research Council (BARC) Bangladesh Agriculture Research Institute (BARI) Bangladesh Water partnership (BWP) Bogra Pawrasova/Municipality Bogra CIRDAP Women Intervention Network (WIN) GARNET (ICDDR-B) Global Water Partnership (GWP) International Service Center (ISC) Pirgonj Pawrasova/Municipality.
• Identification of target beneficiaries.
. • Need assessment of beneficiaries.17
CARE-Bangladesh Department of Public Engineering (DPHE) Health
NNP & Palli Karma-Sahayak Foundation (PKSF)
Department of Agriculture Extension Rotary International (DAE) Directorate of Women Affairs (DWA) Department of Family Welfare Department of Forestry. (IDCOL) Japan Embassy Jatiyo Mohila Sangstha (JMS) JICA / JOCV UNDP DFID German Embassy UNFPA DNFE
TMSS adopts the following strategies during project implementation. • Preparation of beneficiaries' database record through benchmark survey. Department of Fisheries Department of Livestock (DLS) FAO European Commission Royal Embassy/DANIDA Danish
Social Development Foundation (SDF) Seed Industries Development (SID) South Asia Partnership (SAP) Terre des Homes-Netherlands (TDH-NL) UNICEF World Bank
German Technical Cooperation (GTZ). World Fish Center (ICLARM)/ JOBS USAID International (ILO) IFAD Labour Organization Women Entrepreneurs’ Association (WEA) World Food Program (WFP)
Infrastructure Development Company Unilever Bangladesh Limited Ltd. • Beneficiaries' group development.
Mobilization and Campaign
. Awareness. • Maximum utilization of local resources. • Promotion of behavioral changes. • Guide the beneficiary so that they can help themselves. • Involvements the GO & P-NGO's. Sister Organization G. Hard-Core Poor/Poorest C. • Demand driven support i. from beneficiary to beneficiary. • In time. • Capacity development of clients ‘beneficiaries and local management. Partner Organization
In Bangladesh TMSS is the Nation wide Women NGO. monitoring and evaluation. Progressive Member/Small & Medium Entrepreneur E. The need of the beneficiary differs from area to area. Social Development: 1. • Involvements of concerned stakeholders. • Focus on hard-core & ultra hard-core beneficiaries. which is addressing mainly the need-based activities for the development of its targeted beneficiaries who lies in different parts of the country. • Involve low cost technology. Ultra Hard-Core Poor B. • Development of Package Service Delivery to clients/beneficiaries. Poor D. Institution Building 2.
Clients / Beneficiaries:
TMSS works with. In aim to fulfill the present need of beneficiaries the following programs /Activities have been undertaken. • Gender sensitiveness. but maximum output. need based approach. A. • Ensure quality and quantity. Other Community People F.e.18
• Beneficiaries' personal development through awareness or necessary training. • Involve beneficiaries' participation for development initiatives. • Control time lines.
Commercial Business 3. Good governance
. Health & family Planning 2. Capacity Development 3. Child & Gender Development and Trafficking 4. Savings and need base financial support Business/Promotion Venture: 1. Micro finance for Technical 3. Handicraft and Linkage 4.19
3. Flexible Micro Credit for hard core poor 4. Advocacy & Lobbying 2. Support to the disable people 4. Water & Sanitation Health Institution: 1. Non-formal Life-skill Human Rights & Gender: 1. Enterprise Development 2. Marketing & Networking Education: 1. Legal Support. Food Processing & Packaging 2. Weaving 3. Women . Micro Credit & Micro Entreprise 2. Formal 2. Optimum use of local recourses Shelter Health: 1. Sericulture Micro Finance: 1. Nutrition. Dispute & Settlement 5.
Nursery & Tree deposit. Technology Transfer Agriculture: 1. Technology Transfer Environment & Forestry: 1. Agricultural Production. Bio-mass plant & Forestry 4. Human Development 2. Vegetable gardening 2. Poultry & hatchery 2. Fish culture.20
Fisheries & Livestock: 1. Preparedness 2. Renewal energy 3. Crop diversification 3. Seed promotion production and disbursement 4. Rehabilitation Training: 1. Technology Transfer Disaster Management: 1. skim 2. Relief 3. Skill development Training 3. Cultural Activities
. Dairy & Goat rearing 3.
This will helps in the use of unusual or under used resources which will create job opportunities and increase the income generating activities of the rural poor as well. It was started from 1999 and it is being implemented with the help of PKSF in 3393 villages (area) of 657 unions under 109 Upazilla in 34 districts.
Types of Credit Program:
Credit programs offered by TMSS include the followings. At present this program is implementing in 7828 villages in 1133 unions of 148 Upazilla in 31 district of Bangladesh with the help of PKSF. • To empower the poor vulnerable women and reduce their poverty. Urban Micro-Credit (UMC): The program is implementing for urban poor people to improve their overall improvement.21
I am working on the topic “Micro Credit Management of TMSS”. Rural Micro-Credit (RMC): The objective of this credit program is to undertake the rural poor in groups for the improvement of their livelihood. This program started in 1985 and counting till now Tk. and • To initiate the creativity of the poor family.
." TMSS offers many credit programs to develop the economic condition of the rural and urban poor peoples. also known as "micro-lending.
TMSS conducted micro credit program include the following objectives. 1049430680 has been disbursed. • To utilize their own resources for income-generating activities. • To create employment/self-employment opportunities for the poor people. Microcredit is an extremely small loan given to impoverished people to help them become self employed.
training and flexible credit support. TMSS has already disbursed Tk. group development. This project has been implementing in 2065 villages of 23 districts. This group of people is untouched and they have not yet brought in to the mainstream of development. Under this service. but TMSS has given special emphasis to involve them under micro-finance program. 34356500 has been disbursed among 9040 families. Tk. unable to spent money for education and purchase clothing. Tk. earn by selling physical labour. This program has been operating in 10 unions of 1 upazila under Bogra district with the assistance of PKSF Micro Enterprise (ME): This program is for the graduated members of micro-credit and those are eligible who have improved their investment ability with job creations of others. awareness. Besides this type of loan will help in improved crop production practices and other income generating activities through technical support which will help in long term participate increase of income and food security. 953843400.22
Financial Services for the Poorest (FSP): This is a special type of financial services for the poorest people. awareness. it is conducted family survey. no savings. member selection.
. 34356500 has been disbursed among 9040 families. Under this service. group development. training and flexible credit support. activities selection. member selection. income-generating activities. Till date. Till date. 36 upazilas and 322 unions with the assistance of PKSF MFMSF: The aims of this project are for finical support to the marginal and small farmers for their investment in existing agricultural practices and non agricultural business. and having no assets.05 decimals. Financial Services for the Poorest (FSP): This is a special type of financial services for the poorest people. This program has been operating in 10 unions of 1 upazila under Bogra district with the assistance of PKSF. unable to arrange three times meal a day. income-generating activities. it is conducted family survey. This program is operating in 409 villages of 74 unions under 15 Upazilla of 6 districts. activities selection. Ultra Poor Program (UPP): This type of credit scheme is being implemented for those who are mostly landless or having land below . ME program is operated with assistance of PKSF and this program is running in 1737 villages of 253 union.
distributed among the 529 beneficiaries. To change beneficiaries attitude and make them savings minded 3. The impact of these will be Socio-Economic upliftment through poverty alleviation and reduction of unemployment. Livelihood Restoration Program (LRP): This project is going with the help of PKSF in 350 villages of 265 Unions under 159 Upazilla in 20 districts. Savings program: TMSS was initiated through savings activities. To minimize financial crisis & poverty elimination of group members. Savings is encouraged for accumulation of fund and to get rid of poverty. Ultra Poor Pilot Program (UPPP-under PLDP-II): This Program is going on in 11 villages of 07 Unions under 04 Upazilla in 03 districts.23
Micro Finance and Technical support (MFTS): This project is going with the help of PKSF in 515 villages of 72 Unions under 12 Upazilla in 02 districts. Major Objectives: The objectives of savings service of TMSS are as under. 1.has been distributed among the 1138 beneficiaries. A total sum of Tk 6093000/. To ensure and increase participatory investment in any project 4.has been. To raise women empowerment in the society
. With the help of PKSF a sum of Tk 711500/.has been distributed among the 5610 beneficiaries. To create own capital is not possible without savings and individual decision cannot be implemented without it as well. TMSS used to adapt some steps to make them savings oriented. Till date Tk 141460000/.has been distributed among the 14883 beneficiaries Seasonal Loan (SL): This project is going with the help of PKSF in 26 villages of 14 Unions under 05 Upazilla in 02 districts. The accumulated fund is utilized as per planning capacity and capacity of the incumbent with a view to reduce poverty. For this reason. A total sum of Tk 12395500/. 2.
Micro Credit for the Poor (Rural & Urban)
Micro Enterprise for Job Creation of Hard-core Poor
b) Payment frequency: Monthly / contract base d) Maximum loan Amount: 3 lacs
b) Payment frequency: Monthly d) Maximum loan Amount: Tk.000/= f) Flexible Saving b) Payment frequency: Weekly d) Maximum loan Amount Tk: 20.5% a) Loan period: Maximum 3 years c) Grace Period: Maximum 3 month e) Rate of Interest: 12.000/=
b) Payment frequency: Contract base
TMSS Loan Products and Related Conditions:
Flexible Credit for HardCore Poor a) Loan period: Maximum 1 year c) Grace Period: Project base e) Rate of Interest: 5%-10% a) Loan period: Maximum 1 year c) Grace Period: 24 weeks e) Rate of Interest: 12. 2.000/=
b) Payment frequency: Weekly / contract d) Maximum loan Amount: Tk.5% a) Loan period: Maximum 10 years c) Grace Period: 6 month e) Rate of Interest: 5% a) Loan Period: Maximum 1 year c) Grace Period: 2 weeks e) Rate of Interest: 0-10% a) Loan Period: Maximum 1 year b) Payment frequency: Contract base d) Maximum loan Amount Tk: 5.
Investment Loan (Pond & a) Loan Period: Firm) Maximum 5 years c) Grace Period: Contract base e) Rate of Interest: 5%-12.25
c) Grace Period: d) Maximum loan Contract base Amount: Tk.000/=
b) Payment frequency: Contract base d) Maximum loan Amount: Tk.5% Fish Cultivation Loan a) Loan Period: Maximum 1 year c) Grace Period: Contract base e) Rate of Interest: 5%-12. 50.5% Education Loan a) Loan period: Maximum 10 years c) Grace Period: Contract base e) Rate of Interest: 5%-10% a) Loan Period: Maximum 1 year c) Grace Period: Contract base e) Rate of Interest: 8%-12.5% a) Loan Period: Maximum 3 years c) Grace Period: Contract base e) Rate of Interest: 7%-10%
b) Payment frequency: Contract base d) Maximum loan Amount: Tk.000/=
b) Payment frequency: Contract base d) Maximum loan Amount: Tk.00.5% b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 25.000 e) Rate of Interest: 12.00. 20. 3.000/=
b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 20.000/=
cal. non-food item vii) Very weak asset-base / asset-less & viii) Earning is less than one US$ per day per household and food intake less than 1400 k.cal. 25.
. per head per day iv) Earning is about US $ 1 per day per household per earner v) Less capable to spend on non-food stuff affairs by own earning. ii) Who is owner of below Tk. vii) Willing to join in development initiatives viii) Cooperative & kind minded 4.equivalent amount to US $ 441 iii) Food intake is less than 1800 k.26
Category of Borrowers:
1. Poor: i) At best 50 decimals of land in households. Hard Core Poor: i) Below 3 decimals of land ii) Sale physical labor having no other means of income iii) No savings iv) Unable to have meals three times in a day v) Unable to purchase minimum clothing vi) Unable to spend money on education.000/. Ultra-Hard Core Poor: I) Asset & homeless floating people ii) Aimless & ignorant iii) Untouched with any development venture & vi) Fooding & clothing mainly dependent on others 2. vi) Willing to invest for education and non-food accessories. per head per day. Progressive Members: Those who have been associated with development process for a considerable time and have improved their lot/crossed the poverty line through the Micro-credit Program and potential enterprises. 3. These graduated members can create working scope for the Hard Core Poor.
11.147 08 44 24 112. To run TMSS different financial programs. 2. Own Funded Credit Program.47. 07.49. PKSF is supportive to develop Partner Organizations (PO’s) capacity as well as the organizational strength. 1.40.19.) Total Outstanding Loan Amount (Tk. Project Supported Credit Program. 09.) Total Loan Recovery 148.59. 06.403 (Tk. 3. 08.884 672. PKSF has been giving various assistance since 1991.) Total Loan Disbursed 167.46. No.18.104.22.168. 05. Item No.) Total Overdue 1.550 1.) Loan Recovery Rate -
Categories of Micro Credit:
On the basis of the sources of funding.95. of Groups No.000 91.88. 02. of Field Workers Total Members Achievement in the Cumulative reporting year Achievement 1.550 581.900 (Tk.69.051 45. 03. PKSF Supported Credit Program: As a very worthy financial organization.28. 01. of Branches No.27
Present Portfolio of Credit Programs:
.905 Amount (Tk. 04.07.294 13.95.73. of Total Staff No. These are as follows1.99
Total Savings 8. 10.34. the financial support programs of TMSS are divided into three categories.704 174 1607 1006 6.494 99. Palli Karma Sahayak Foundation (PKSF) Supported Credit Program.800 Amount (in Tk.
00 0 19.)
2.000/-. 15. Cumulative disbursement under this program is Tk. 3.36. provides financial support with its own fund to the rural poor. World Fish center-USAID.65.66.345 95.76.48. According to the organizational philosophy & policy.00. OXFAM. TMSS has been implementing this Project Supported loan with the assistance of Sonali bank. The status of the loan from PKSF is shown below: 29.664 (Tk.920
Service charge paid to PKSF 1. TMSS.) Fund Refunded to PKSF (Tk.945 46. Project Supported Credit Program: With the help of the development partners (other than PKSF).97. DAE.000/-. the microcredit program is conducted as a component of social development programs for the TMSS members assistance.43. This type of loan is known as project loan.60 0 -
Fund received from PKSF (Tk.43.00.66. ILO.56.
Sources of Fund:
The major sources of fund for TMSS are the following.59. 1) External Donors grants 2) Internal savings of members 3) Sponsors Equity and others (including interest and other charges) 4) Loans from national agencies via some international council or assembly of national representatives.98.19.400 9.14. the demanding areas is covered by this fund. ICCO.)
Beside the financial assistance.27.
. Fourth fishery and other Development Partners.33. 2. PKSF plays a vital role in order to develop image of TMSS. Own Funded (Non PKSF) Credit Program: Beside PKSF credit. Cumulative disbursement under the project loan is Tk.) PKSF fund outstanding (Tk.
78% 1.50/262 28% 2.No. 909153 worker v) Member Borrower ratio 03.32% Tk. 01.29
Ratio for Micro Finance:
Sl.35% 11% Ratio
iv) Operating Self Sufficiency 157% ratio (OSS) v) Financial Self Sufficiency ratio 130% (FSS) vi) Return on capital ratio vii) Loan-loss Provision ratio 02. 405.98% (CRR) ii) On Time Realization Rate 99.69% 2. Description Financial Sustainability: i) Return on Performing Assets 27% (RPA) ii) Financial cost ratio iii) Operating cost ratio 3.65% 262 : 194
iv) Loan outstanding per Field Tk. Operating Efficiency Ratio: I) Cost per unit of money lent ii) Cost per borrower iii) Members per field workers 7.99% (OTR) iii) Port Folio at risk iv) Delinquency ratio v) Reserve ratio 1. Port-folio quality ratio: I) Cumulative Recovery Rate 99.
vi) Savings and loan outstanding 50% ratio
700/-. TMSS Savings Scheme: The beneficiaries save their money in TMSS saving scheme for a particular period and it is returned while desired or according to savings rule of TMSS.00.2.42.195/.71.has been deposited and present balance is TK. Tk. 5. Voluntary Savings Program
A.35.349/. Up to June 2004.081/-. 2. Every member has passbook and they get their interest as per bank rate.95.31
TMSS operates saving activities (accumulation of tiny amount of money from individual client) in order to mitigate Group members’ crisis situation and promote their livelihood through door-step service. Up to June 2004.55. Savings Accumulation by Group Members 75% 21% 4% General Savings S. Savings TSS
. B.199/.00 – 10.
Classification of Savings Programs:
Classification of Savings programs are the followings. They are encouraged to save money on regular basis to develop their own capital that helps them to accumulate capital by time. Saving program helps the poor to save money easily and effectively. 1. Tk. Regular Savings Program A.37. 23. 2.43. Special Savings: The Group members accumulate this savings and can withdraw this at any time as per their need.00 (not any fixed amount) on regular basis.55.103/.49. B. Flexible Savings: To make the hard-core poor saving-oriented and create their capital. 4.87.has been deposited and present balance is Tk. Up to June 2004 Tk. TMSS operates Flexible Saving facility among them. 84.14.has been deposited and present balance is TK. General Savings: General savings collected from the group members on regular or weekly basis. The members save Tk.89.
TMSS provides with financial supports to the networking NGOs for their capacity–building and facilitating development activities. Members can get loan in terms of their agreement. In such case. The credit holders
. weekly. scholars. Award Giving: TMSS awards groups. NGO Financing: TMSS enhances networking of the local NGOs to facilitate and coordinate work of NGOs for its smooth operation at the interest of development.32
Member’s Benevolent Fund (Insurance): All the beneficiaries of TMSS are involved in this program and contributing regularly to this fund for mitigating future crisis. this financial service is provided them. Grant Allocation : In case of the small worthy initiatives (NGOs) those who are the networking members / CEFE club members / registered cooperatives shomitee are allocated Grant money from TMSS.00 in the morning. Every worker is assigned to a certain area with a record book for each day collection. which differs from person to person depending on the amount of loan willing to take. local initiators.
Loan Collection Procedure:
The collection is conducted on daily.
Loan Distribution Procedure:
Only female members can get loan from the NGO and some people from same area forms a group to get the credit facility. TMSS provides necessary information and help to their members to effectively use the money. Now this has been closed. A total number of 27 NGOs have been financed up to June 2004. The work begins at 8. If the peoples wish they can work together or may work alone with the credited amount. rest of the loan and service charge are paid from this fund through the decision of the Para Group (PG). and innovative initiators for their extra-ordinary performance considering successful implementation of the programs. If any member or guardian of the beneficiaries claims. monthly or contract basis. social people. the field workers leave the office for collecting money from credit holders.
2. As per desire of the concerned authority inception report. workshop.
. festoons. 3. Coordination and Evaluation:
TMSS follows some set of activities and principles to effectively and efficiently conduct their existing programs and also plans for the future as well. efficient and qualified personnel will be appointed. For efficient and successful implementation of the project. posters.33
form a group and meet together in a specific time and area with their receipts. Hence awareness building campaign in the general public cohort will be carried out through meetings. religious leaders. After proper orientation they will be deployed to the working areas with specific assignment. As planning is the most important step for successful implementation of any project. capacity of the local NGO will be strengthened through partnership development and message dissemination. other voice-full stakeholders will be organized. The techniques for program management. co-ordination and evaluation are as follows. 4. For successful implementation of the project. All members join together and pay the due to the collector.
Program Management. stickers and multimedia in the society. proper work plan for implementation of the project will be checked out very carefully. GO. seminars and disseminating different effective messages through banners. audio-visual shows. monthly report and final completion report will be prepared and dispatched in time. energy. NGO-bodies. To address Education. The problems are mainly dependent on social awareness. 5. 1. 6. Health and social awareness meetings with the local leaders. and then the payments are recorded in the daily journal book for further calculation.
Women have become the focus of many micro credit institutions and agencies worldwide. these bank operations naturally gravitate to large. A new generation of banking institutions [and the banking professionals to run them] is arising: Banking institutions motivated by a less myopic vision of profitably serving the common good can be capitalized for the primary purpose of entry-level economic development. they will be able to operate profitably in markets characterized by very small transaction sizes and less affluent clients. profitable transactions with affluent borrowers. but they are individuals with options they will not risk their future on short-term or unpredictable bureaucratic support. The reasoning behind this is the observation that loans to women tend to more often benefit the whole family than loans to men do.
. Entrepreneurial Talent and Energy are Scarce Invaluable Resources for Economic Growth: Our economies cannot afford not to find and develop independently responsible entrepreneurs and public bankers who are financial critical thinkers. By lowering the transaction costs through institutional specialization and innovation in delivery systems. It has also been observed that giving women the control and the responsibility of small loans raises their socio-economic status. Because of the significant overhead of such banking operations. These individuals can be attracted to the micro credit industry. which is seen as a positive change to many of the current relationships of gender and class. Traditional Private Banks should not be expected to Offer Micro Credit: Existing banks with a traditional operating philosophy typically have significant investments in facilities and costly operating structures. A Savings Investment as Preferable Aid: Independent borrowers earn the dignity and lasting self-confidence associated with responsible loan repayment. Institutional managers are more careful to ensure borrower success and generally perform better when there are risks involved.
microfinance is expanding beyond its roots in savings and business lending and now offers other forms of financial services. Some new microfinance focused-organizations. A radically efficient.35
Poor entrepreneurs possess the same survival skills as the toughest. including most notably insurance and housing microfinance. Beyond enterprise lending and savings: Increasingly. Investment in self sustaining institutions that finance poor residents is a comparatively cost-effective use of scarce subsidies for economic development. microfinance offers the promise that it could eventually evolve into a specialized form of banking catering to economically active poor people who currently happen to be unbanked. they represent the population of those individuals who will be aggressively pursued as successful. In many ways. poor entrepreneurs are not only prebankable. rather than of microfinance. large-scale. most affluent business operators: Poor entrepreneurs save money. NEW banking operating infrastructure required: Simply modifying old methods will not successfully expand poor people's participation in their country's economy. carefully apply their entrepreneurial energy and repay debts as scheduled to maintain access to future loans.
Economic Impacts of Microfinance :
. see for instance the Development Innovations Group (DIG). 25 or 50 years from now. very affluent captains of enterprise in 10. In other words. The costs of doing research in the microcredit and microenterprise areas are extremely low compared to other strategies to stimulate economic development such as tax abatement or continued support for welfare programs. have embraced this more expanded vision of microfinance and speak of financial services for the poor or of development finance.
6%). (c) Wage Wage earning contributed about 23 percent of total annual income for the land-poor households.
. sustain their income. have larger operational holding. The use of pure drinking water from hand tublewell was found universal. irrigation equipment (1.7% compared to 1. 9.5% compared to 8%).6%) and rickshaw/van (8% compared to 2%) thus showing higher asset ownership of the participants. (d) Employment The participant households are better able to ensure more employment on own farms due to their better access to the land rental market. Self-employment activities had more than 50% contribution to total income for the participants as against 43 percent in case of non-participants. radio (17.9% compared to 12.23% compared to 0. goat/sheep and cows compared to non-participants. (b) Sanitation and Drinking Water The BIDS study finds small positive influence of participation on waste disposal and use of sanitary toilets among the land-poor households with no clear evidence of program impact on hand-washing. Microcredit helped participant households to earn about 8 percent higher income than that of the non-participants. Wage and self-employment in nonagricultural sector is also higher for the participant households due to their access to microcredit program (e) Assets : land and non-land Average size of land owned by participant households is lower than the nonparticipants. 91 decimals compared to 149 decimals. had better food security and about 26 percent of rice consumption out of own production (after sale).36 (a) Income The 1998 survey found the average annual income of participant households to be higher than that of the non-participants.1. The second BIDS survey suggests that nominal household income increased by 19 percent in program villages and by only 13.5 percent in control villages. Higher percentage of program participants own poultry.23%). and therefore.2 Social and Other Development Impacts (a) Health and Nutrition There is positive program placement effect on nutrition status. Compared to non-participants the participant households were better able to cope with flood. due to greater access to sharecropping. which was also marginally higher than the nonparticipants. The BIDS study however suggests that the eligible participants mortgage or rent-in more land than the nonparticipants. boat (3. achieve higher purchasing power and consumption level (b) Food Security The BIDS study finds the program participants. A higher percentage of the participants own bicycles (12.
There have been some evidences that members of microfinance institutions are able to stop domestic violence due to personal empowerment and through group action. Some women microcredit clients have been elected as Chairpersons and Members of various Union Parishads.
. In Bangladesh. children's marriage. microcredit programs have also increased women's participation in the activities of local government. The BIDS study also found that program participation increases the chance of both boys and girls to be enrolled in schools. Now women microcredit clients take greater roles in community activities and organizing for social change.37 (c) Literacy and School Enrollment of Children Adult literacy rate is significantly higher among the eligible participants. (d) Empowering Women Microcredit programs' main target is women. There are strong evidences that. Another is women's increased in decision making in the areas of family planning. buying and selling of properties and sending daughters to school. One consistent finding is the increased self-confidence and increased self-esteem. microcredit programs contribute to women's empowerment. the lowest and most vibrant tier of local government.
. find it hard to believe that they will really be provided with collateral-free loan. Some people consider the activities of MFIs to be difficult to understand. Frequent monitoring of the groups increases confidence of the group members. Those who are not aware of the activities of MFIs. which happened in many areas. Local people are recruited in different positions. This observed mainly in remote areas. But often the prospective beneficiaries are not willing to be associated with the MFI and usually it takes time to build confidence among them.Many prospective beneficiaries are aware of cheating by some of such organizations. 2. the following steps can be followed by the NGO. 4.40
The credit management system of TMSS is well balanced and they operate their programs very carefully.Often the amount of loan is considered to be inadequate. Since the recovery rate of credit program is nearly 99%. where micro credit is still not popular. Personal contacts were made with some local elite to motivate them to favor the activities of the organization. 2. To overcome the opposing factors. 3. Often relatives and friends of the employees and local union parishad members help in social confidence building. so we can easily say that this organization is running well with their vision. 1. 4. The following are found to be the rationale behind such skepticism. 1.
It is strongly belief that without contribution of women a country can not be developed. TMSS need to address its client perfectly. CRM systems help TMSS to improve the profitability of their interaction with current and potential clients while at the same time making interactions safer and friendlier through individualization and personalization. improve clients satisfaction and ensure client retention. This is why they are designed various type of loan scheme for the helpless women in the society. In this report I am trying to highlight what kind of client relationship strategies are TMSS following. But to materialize their vision. it is crying need to formulate some strategy that will help it to acquire new clients as well as to exist old clients. Client relationship management is a business strategy that uses information technology to provide the organization with a comprehensive. For this reason. It has already established its activities almost 62 district in the Bangladesh. But still it has not been able to formulate any strategy for the lost client. The system goals are to enhance clients service. So that all kind of can be come into its shelter.41
TMSS is one of the fast growing NGO in Bangladesh. Now-a-days there are lot of NGO’s are working in Bangladesh and the competition is being increased among them. It has been started its journey with the slogan of “Women empowerment in the society”. It is very urgent because to cultivate lost client incurs relatively low than that of create new client. reliable and integrated view of its client base so that all business process and clients interactions help maintain and expand mutually beneficial relationship.
. I observed that TMSS has taken some steps to acquire new client as well as to maintain existing clients. Because clients are the heart of their organization.
In fine we can say that if TMSS wants to survive and keep their performance best among the NGO’s it has to be concerned about the CRM system.