Microcredit

Microcredit for Enterprise Development
CMES has organized a credit scheme for financing income generating activities of the adolescent girls and other disadvantaged youth. This microcredit scheme is managed by a dedicated central and field staff within CMES Microcredit Wing. CMES has been the pioneer in this respect by giving adolescents as well as young adults access to credit, irrespective of the marital status of the women. CMES’s  credit programme is implemented and expanded mostly with the fund borrowed from PKSF.

The management & organization
The microcredit wing is managed by the Deputy Project Coordinator (Microcredit) and programme is implemented the credit staffs at the service centre, along with the field credit staffs including Regional Manager, Credit Manager, Credit Officers and other credit staff. All have an intensive training on the credit system received at CMES. Some of the staffs also have external training including training provided by PKSF. In every Unit, these trained staff members form a team to manage the loans within the Programme. The loan proposals are received, studied and later are recommended to the Regional manager by the team and then Regional Manager send the suitable proposals to the Service Centre. In the regular meetings of the Loan Review Committee, then proposals are approved and the loans are duly disbursed. The credit staff at the field conducts the repayment and monitoring activities, and keeps close contact with the ongoing empowerment programme for the loanees.

 Some statistics about microcredit programme
Cumulative Loan Information (in Bangladesh Taka)

Up to 31 December 2013

Total
Participants
Present
Loanees
Cumulative
Loanees
Total
Realization
Total
Disbursement
Total
Outstanding
22955 15639 167602 1757649960 1876321200    118671240

 1 US$ ≈78 Taka
Loans and corresponding activities
The size of each loan is between Tk. 3000 and Tk.29, 000. The loans are repayable in 46 weekly installments. In the management of the loans, an emphasis is given on whether the young loan holder herself rather than her parents are in control of the business and with the income. The credit scheme is designed as a capacity building training in financial activities, leading to an empowering financial self-reliance through cash income of adolescents and youth.

Cow rearing Garments Goat rearing and poultry
Paddy husking and Paddy business General Stores Grocery shops
Handicraft Betel leaf cultivation Fishing net weaving
Hawkers business Sweetmeat business Puffed rice
Tea stalls Nursery Cloth trading
Managing Rickshaw Rickshaw and Cycle garage Wheat husking
Wheat and Rice business Candy Making Fish culture
Laundry Stationary Confectionery
Photography Pharmacy Home Gardening
Food processing Beauty parlour Shoe stores
Mini flour Mills Vermicompost

So far, members have taken loans for the following activities:

CMES has Micro Enterprise loan programme. The size of each loan is between Tk. 30,000/- to 3,00,000/- through these more experienced young people are going for bigger efforts in income generating activities.