RIC’s microfinance programs have been an integral part of the long journey towards comprehensive multidimensional development for Bangladesh envisaged and pursued by the organization. Micro-credit is at the heart of financial sustainability for the poor, disadvantaged and underprivileged in both rural and urban areas. Income-generating activity has the potential to raise economic living standards, and for the poorest, to achieve a minimum stage of economic development and livelihood security: empowerment and self-reliance are the aims of RIC’s microfinance programs. RIC has expanded the areas of microfinance provision and beneficiary coverage so that the poor of remote and isolated areas in Bangladesh have access to microfinance and with a view to achieving program sustainability for the organization as well. The specific objectives of this program include:
- Make credit available to the poor helpless people who do not have access to the existing (formal) credit facilities.
- Help create self-employment and sustainable income for the target people through income generating activities (IGA) and enterprises.
- Mobilize savings for the poor.
- Reduce dependency on money lenders.
- Enhance income of the organization for its sustainability.
- Empower the women, both in rural and urban areas.
- Assist the beneficiaries to establish linkage with a package of development options.
RIC has created an innovative, multidimensional lending service capable of properly catering to the needs of different groups and individuals. At the same time, RIC offers skill development training in respective trades, business and financial management assistance to facilitate success for those commencing their income generating activities. RIC offers the following microfinance packages:
JAGORAN (Formerly RMC & UMC): Under this program, the rural and urban borrowers are encouraged to undertake income generation activities in which families are involved. Under this program loan provided to an individual through the group. The size of the loan under this component is ranging from Tk.5000 to 29000.00 @ 25% declining service charges. In this program women, participation is higher than the male participants.
BUNIAD (Formerly UPP): Under this program, the loan is provided to address the needs of the excluded ultra-poor segment of the society. The program is playing a significant role to achieve the as determined by UN to end poverty. The program is based on geographical diversity demographical characteristics and other heterogeneous conditions.
AGROSOR (Formerly ME): This program is implementing to extend financial services & the program member of their programs who is engaged in economic activity. That require the bigger amount of capital. Any services activity with an investment up to BDT-1.5 million (excluding land and buildings) is eligible to qualify for the loan under the program. An individual entrepreneur can take the loan up to BDT 1.0 million for his/her enterprise under this program.
Agricultural sector loan under the Agriculture and Rural credit policy of Bangladesh Bank:
This program is implementing to support enhancing agricultural production of the country and rural development Fund for this program fund are availing from the Government and Private commercial bank almost without any collateral securities. The rate of interest for this fund is also fixed by Bangladesh Bank. RIC is availing such type of loan from both Government and private banks and is disburse the fund in the crop, non-crop sector, and other income-generating agriculture related sectors. At present, RIC is availing Loan from BASIC Bank Ltd., South East Bank Ltd., and Shahajalal Islamic Bank Ltd and is exploring fund from other banks.
SUFOLON (Formerly SL & ASM): To cover the inadequate agriculture credit service of the formal financing organizations/institution and the rigid operational modality of available microfinance hindered the inclusion of farmers into mainstream microfinance system the SUFOLON has been implementing a specially designed agricultural lending program for a long time.
The salient features of the program include a provision of flexible repayment modes, such as one shot or a single installment consistent with the agricultural scheme.
Developing Inclusive Insurance Sector Project- DIISP: The objective of the pilot project is to devise actuarial based sustainable microinsurance services to the poor with the objective of protecting the livelihoods of poor households, especially women, from risks such as death, illness, livestock loss, crop loss etc. RIC has been implementing the project in Pirojpur district. Up to 2014, the project was funded by PKSF and from January 2015 the project is running with RIC own fund.