ENRICH Finance

  • Enrich Regular Loan: Three types of special credit services have been designed for the ENRICH households Income Generating Activities Loan (IGAL), Livelihood Improvement Loan (LIL), and Asset Creation Loan (ACL). All the three credit services can be

An Entrepreneur is working in her own poultry firm. She received IGA loan, training and marketing and other assistance under ENRICH

accessed simultaneously by a household. Under IGAL, eligible household members can take loans for more than one activity and for expansion of an activity to increase their income. In this context, economic activities with potential for productivity growth are selected. Training for skill development and upgrading, marketing assistance, and other necessary services are now routinely provided. As of now the ceiling of this loan is BDT one million (US$11,805) and the maximum service charge is 25% on a declining balance method. The LIL is made available for repairing houses, the purchase of necessary household gadgets, and taking other actions related to livelihood improvement including defraying expenses for social functions such as the marriage of a daughter or a son. In this case, the ceiling for a household is BDT 10,000 (US$120) and the servicing charge payable is 8% (on the basis of declining balance method). The ACL is designed to assist a household in acquiring any kind of productive asset. The ACL ceiling for a household is BDT 30,000 (US$360) and the servicing charge payable is 8% (on the basis of declining balance method). Up to April, 2018 a total of BDT 8,400 million (US$99.10million) has been disbursed under these three loan schemes in 200 ENRICH unions.

Training of IGA programme participants is in progress 

  • Special Savings Scheme: Saving is one of the methods of capital formation for a household. An asset base is important for a household to lift itself from poverty. Therefore, a special savings scheme has been designed under the ENRICH for the ultra-poor households. From among them, female-headed households and households with disabled members are particularly eligible to join this scheme. Such a household is advised to open a bank account and deposit some money (at least BDT 100=US$1.20) into it per month for two years. The amount saved is matched by the PKSF, in terms of grant, at the end of two years, up to a maximum of BDT 20,000 (US$240), on the condition that the total amount will be used to acquire an asset (e.g. land, farm animals, skill upgrading of household members etc.) in consultation with the concerned PO and the PKSF. Such an asset base is likely to help a concerned household to move towards a better and sustainable socio-economic future. As of April, 2018, 4,153 households of different ENRICH unions have registered under this savings scheme. Their total savings stood at BDT 34.8 million as of April, 2018. Up to April,2018, 1442 members have been given a total matching grant of BDT 18.3 million (US$215 thousand) under this savings scheme, which they have used to acquire affordable appropriate assets.