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. Previously it was known as Rural Microcredit. PKSF extended its microfinance services for the rural poor through Jagoron (Rural Microcredit) programme from October, 1990. Under this programme, the rural microcredit borrowers are encouraged to undertake family-based income generating activities. PKSF consistently addresses the rural poor. Since its inception, PKSF has been insistently supporting local Microfinance Institutions (MFIs) who work as Partner Organizations (POs) of PKSF. Funds are made available with least conventional formalities in the rural areas through these Partner Organizations. In 1999, PKSF felt initiated to extend its microfinance services for the urban poor through Urban Microcredit (UMC) programme, which is now a part of Jagoron. Woman participation in Jagoron (UMC) 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. Jagoron (UMC) 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 2014-15, loan disbursement of PKSF to its Partner Organizations (POs) under Jagoron is BDT 9.20 billion and outstanding amount of loan reached at BDT 17.62 billion. During the FY 2015-16, amount of loan disbursement from PKSF to POs is BDT 9.41 billion and outstanding amount of loan is 18.42 billion.
- During the FY 2015-16 POs’ 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 current FY 2016-17 (from July to November-2016) loan disbursement from PKSF to POs and POs to borrowers is BDT 3.93 and 56.57 billion respectively.
- Up to November 2016, total number of borrowers stood at 6.03 million, which is 72.21% of the total members under this loan program.
- In November 2016, the average loan size under this programme stood at BDT 24,609.
- Jagoron still dominates PKSF’s loan portfolio with its Partner Organizations (44.36%).
Trend of loan disbursement under Jagoron:
Up to November 2016, cumulative loan disbursement from PKSF to POs and POs to Borrowers is BDT 108.45 and 1053.12 billion under this program respectively.