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 2017-18, loan disbursement of PKSF to its Partner Organizations (POs) under Jagoron is BDT 10.40 billion and outstanding amount of loan reached at BDT 19.85 billion. During the FY 2018-19, amount of loan disbursement from PKSF to POs is BDT 11.10 billion and outstanding amount of loan is 21.16 billion.
- During the FY 2017-18 POs’ loan disbursement to its borrowers is BDT 193.68 billion and outstanding amount of loan as on 30th June, 2018 is BDT 100.95 billion. During the FY 2018-19, loan disbursement from POs to borrowers is BDT 217.70 billion and outstanding amount of loan as on 30th June, 2019 is 121.10 billion.
- During the current FY (from July to December 2019) loan disbursement of PKSF to its Partner Organizations (POs) under Jagoron is BDT 5.06 billion and outstanding amount of loan as on 31st December 2019 reached at BDT 21.16 billion. At the same time, POs’ loan disbursement to its borrowers is BDT 144.82 billion and outstanding amount of loan as on 31st December 2019, is BDT 131.45 billion.
- 31st December 2019, total number of borrowers stood at 7.15 million, which is 72.51% of the total members under this loan program.
- In December 2019, the average loan size under this programme stood at BDT 36,266.
- Jagoron still dominates PKSF’s loan portfolio with its Partner Organizations (37.18%)
Trend of loan disbursement under Jagoron
Up to December 2019, cumulative loan disbursement from PKSF to POs and POs to Borrowers is BDT 140.63 and 1704.19 billion under this program respectively.