Microfinance

Programme Description
One of the oldest initiatives of its kind in Bangladesh and BRAC’s largest programme, our microfinance operations began in 1974 and covers all 64 districts. We provide access to financial services to the poor, who are unable to obtain credit from mainstream banks due to lack of necessary assets and referrals. Our borrowers, most of whom are women, use these loans to engage in various income generating activities to improve their socio-economic status.

Initially limited to encouraging self-employment, our Microfinance Programme has progressively moved towards supporting small enterprise development. This broadening of focus stems from a growing recognition of the multiplier effects of enterprises through employment generation, as well as backward and forward linkages with many economic activities.
 

Our Approach
Our approach to microfinance involves providing collateral free credit and savings services at the doorsteps of our target population – the landless poor, marginal farmers and vulnerable small entrepreneurs. We recognise the heterogeneity among the poor and focus on careful targeting and development of customised financial products and services that best meet their varying needs. A distinctive aspect of our microfinance programme is the credit-plus approach – in addition to providing loans and training we have developed an integrated set of services that work to strengthen the supply chains of the enterprises that our members invest in, giving them access to quality inputs and support in marketing their products. These services are provided by our social enterprises. Our microfinance members have access to all of our other development interventions.
 

Village Organisations
Organising the poor is at the heart of our work. Our Village Organisations (VOs) - each with 30-40 women - act as platforms for poor women to come together, access services such as microfinance, exchange information and raise awareness on social, legal and other issues concerning their daily lives.