Jagoron: Credit for 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 program in October 1990. Under this program, borrowers are encouraged to undertake family-based income generating activities. PKSF consistently addresses the rural poor. Since inception, PKSF has been insistently supporting its Partner Organizations (POs). Funds are made available with least conventional formalities in the rural areas through these POs. In 1999, PKSF felt the need to extend its financial services for the urban poor also. In urban area, women’s participation in Jagoron is higher compared to that in the rural areas and since the former have higher participation in the labor market, larger access to material resources, greater mobility and meaningful roles in the household decision-making process. Urban borrowers are distinct from the rural ones 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 natural disasters.
Lending activities under Jagoron
- In FY 2018-19, the loan disbursement of PKSF to its Partner Organizations (POs) under Jagoron was BDT 11.10 billion and the outstanding amount of loan reached BDT 21.16 billion. During the FY 2019-20, the amount of loan disbursement from PKSF to POs was BDT 10.22 billion and the outstanding loan amount was BDT 21.14 billion.
- During the FY 2018-19, the POs’ loan disbursement to borrowers was BDT 217.70 billion and the outstanding amount of loan as on 30 June 2019 was BDT 121.10 billion. During the FY 2019-20, the loan disbursement from POs to borrowers was BDT 212.94 billion and the outstanding amount of loan as on 30 June 2020 was BDT 128.41 billion.
- During the current FY (from July to September 2020), the loan disbursement of PKSF to its POs under Jagoron was BDT 2.39 billion and the outstanding amount of loan as on 30 September 2020 reached BDT 20.84 billion. At the same time, POs’ loan disbursement to borrowers was BDT 45.77 billion and the outstanding amount of loan as on 30 September 2020 was BDT 127.92 billion.
- As of 30 September 2020, the total number of borrowers stood at 6.89 million, which is 71.06% of the total members under this loan program.
- In September 2020, the average loan size under this program stood at BDT 37,247.
- Jagoron still dominates PKSF’s loan portfolio with its POS (35.48%).
Trend of loan disbursement under Jagoron
Up to September 2020, the cumulative loan disbursements from PKSF to POs and POs to Borrowers were BDT 148.17 and BDT 1818.09 billion under this program respectively