WProducts of Buro Bangladesh
As Buro Bangladesh is a Non-government
social development organization, its main
products are :
MICROFINANCE LOAN PRODUCT
Including -
General Loan:
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 25,00,000,
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 in45-90 installments as weekly for 1-2 year
and 12-36 installments as monthly for 1-3
years.
Micro-Enterprise Loan :
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 expectedboth to provide equity and generate wage
labor employment (other than family labor).
Micro-enterprise loans range between BDT
50,000-BDT 25,00,000, repayable in 45-90
installments as weekly for 1-2 year and
12-36 installments as monthly for 1-3
years.
Agriculture Loan
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 range between BDT10,000-BDT 25,00,000, repayable in 45-90
installments as weekly for 1-2 year and
12-36 installments as monthly for 1-3
years.
Hand Loan:
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 and the range
between BDT 5,000-BDT 50,000, repayablewithin 3-6 months.
Disaster Loan :
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 1,000 —
BDT 20,000 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 loansmeet 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 5,000 — BDT
2,00,000, repayable in 45-90 installments
as weekly for 1-2 year and 12-36
installments as monthly for 1-3 years.MICROFINANCE SAVINGS PRODUCT
Including -
1. General Savings:
Small depositors usually value convenient,
easy access and relatively secure delivery
savings services above all else. In some
environments, to be useful to women, the
delivery systems must respond to their
restricted mobility and availability of time.
Customers also value privacy, preferring
systems that do not reveal to other
customer how much they save and
withdraw. The general savings account is
like a current account, where customers
can save or withdraw on demand.
2. Contractual Savings
The poor often value regular and
disciplined savings systems as a way of
building up useful lump sums. Thissavings can be invested or used for social
obligations such as marriages, funeral or
children’s education. These products
respond to the poor’s demand for illiquid
savings systems. The liquid savings
system protects their money from
frivolous spending and allows the slow but
steady accumulation of a lump sum. BURO
pays a significantly higher rate of interest
on these regular voluntary savings than on
the general savings account. The
contractual savings account allows savers
to determine the amount and time of
deposits and withdrawals. In the
contractual savings account clients agree
to regularly deposit a set amount for a set
period of time after which they can
withdraw the entire amount plus the
interest.