A credit instrument to initiate household based enterprise development
Jagoron is the name of a credit instrument of PKSF to initiate household based enterprise development in Bangladesh. PKSF extended its financial services for the rural poor through this programme from October, 1990. Under this programme, borrowers are encouraged to undertake family-based income generating activities. PKSF consistently addresses the rural poor. Since its inception, PKSF has been insistently supporting its Partner Organizations (POs). Funds are made available with least conventional formalities in the rural areas through these Partner Organizations. In 1999, PKSF felt initiated to extend its financial services for the urban poor also. In urban area, woman participation in Jagoron is higher in comparison to its rural counterpart and since they have higher participation in the labour market, larger access to material resources, greater mobility and meaningful role in the household decision-making process. Urban borrowers are distinct from the rural borrowers in a number of ways. They are the landless squatters and they usually take loan for small trading. Vulnerable to threats of eviction, they live in slums or makeshift shacks. The number of urban poor is continuously increasing as a result of forced migration, limited employment opportunities in the rural agriculture sector and recurrent occurrence of several natural disasters.
Lending activities under “Jagoron”
- In FY 2015-16, loan disbursement of PKSF to its Partner Organizations (POs) under Jagoron is BDT 9.41 billion and outstanding amount of loan reached at BDT 18.42 billion. During the FY 2016-17, amount of loan disbursement from PKSF to POs is BDT 9.54 billion and outstanding amount of loan is 18.91 billion.
- During the FY 2015-16 POs’ loan disbursement to its borrowers is BDT 142.33 billion and outstanding amount of loan as on 30th June, 2016 is BDT 68.32 billion. During the FY 2016-17, loan disbursement from POs to borrowers is BDT 151.44 billion and outstanding amount of loan as on 30th June, 2017 is 84.56 billion.
- During the current FY (from July-2017 to November-2017) loan disbursement of PKSF to its Partner Organizations (POs) under Jagoron is BDT 4.29 billion and outstanding amount of loan reached at BDT 19.25 billion. At the same time, POs’ loan disbursement to its borrowers is BDT 78.58 billion and outstanding amount of loan as on 30th November, 2017 is BDT 90.27 billion.
- Up to November-2017, total number of borrowers stood at 6.36 million, which is 72.24% of the total members under this loan program.
- In November 2017, the average loan size under this programme stood at BDT 28,614.
- Jagoron still dominates PKSF’s loan portfolio with its Partner Organizations (43.16%).
Trend of loan disbursement under Jagoron:
Up to November-2017, cumulative loan disbursement from PKSF to POs and POs to Borrowers is BDT 118.36 and 1226.57 billion under this program respectively.