General Loan:
The loan is intended to allow rural and urban poor households to finance their economic activities and build a strong capital base. General Loans are working capital loans given to poor and disadvantaged households. General Loans range from BDT 5,000 to BDT 49,000, depending on the economic activity, the borrower’s management capacity, and demand for the product and/or services in the market. The loans are repayable within a year in 46 installments.
Micro Enterprise Loan:
PDF has developed its micro-enterprise loan for the 15-20% of entrepreneurs capable of graduating from groups, as well as entrepreneurs in the community. Micro-enterprise loans are individual loans that are assessed on the basis of household cash flow, business projections and the reputation of the borrower amongst her/his business peers/in the community. The size of the loan depends on the size of the businesses and the comparative advantages that the entrepreneurs have. Micro-enterprise loans range between BDT 50,000-BDT 200,000, repayable within a year in 46 installments.
PDF MF Program
PDF follows peer group approach. All Groups are with poor women. Each group has one group leader. All members sit together once a week. One field staff discuss different social or local issues, take new decision through information sharing, find business opportunities, collect weekly savings and loan installment, consensciously prepare new loan proposal etc.
Some Special features of PDF Microfinance Program:
- Customers freedom
- Open withdrawal savings
- Savings withdrawal has no relationship with loan outstanding
- Strong financial discipline and internal control at branch level
- Branch office automation with software