The CDF had identified and internalized the prime needs
of NGOS, specially small and medium ones in the juncture
of donors fund saturation for microcredit program. As
network and capacity builder, CDF has been searching alternative
funding sources for its member NGOs. A proposal for Bank
loan to NGOs was submitted to Sonali Bank spelling out
a linkage and guarantee approach. After long discussion
and review about pros and cons, the new lending approach
has been agreed by the biggest government commercial Bank.
Thus CDF and Sonali Bank has signed a Memorandum of Understanding
(MOU) to lend loan fund to NGOS for Microcredit programs.
As a result, the final partnership has been built on Tripartite
Mechanism of lending from Sonali Bank.as provider of loan,
CDF guarantor and the NGO as recipient of loan for microcredit
program operation.
There
is serious need of revolving loan fund for small and medium
NGO on the demand stream and idle fund in the supply stream.
Bank thus both the NGOs and Nationalized commercial Bank
(NCB) are not benefited mutually, rather loosing.
The microcredit linkage partnership program will enable
both bank /specialized financial institutions to overcome
their liquidity problem and small /medium NGOs will have
acceptance to bank loan to meet up their fund crisis for
microcredit operation. The CDF as network organization
facilitates by guarantee and technical assistance to build
trust between Bank and NGOs. Thus the approach is opening
up a new dimension for Microcredit linkage partnership
between NGOs and Bank for coverage of get to cover poor
and help banks to earn profit out of idle money use. This
new mechanism is an innovative lending approach for all
concerned by collective efforts of CDF, NGOs and Sonali
Bank.
CDF
has instigated the linkage microcredit program with 26
NGOs through out the country. Their program performance
is excellent. We disbursed under the Linkage Microcredit
Program Tk.11million among those NGOs and recovery rate
in NGO level is 100% and also 100% repayment rate exists
in NGO to Sonali Bank level.
Most of the Linkage partner NGO is small level Community
Base Organization (CBO) has been performing well for a
long time in the program operation but in terms of capacity
aspect still they have lot of limitations and deficient
in the Credit program operation and they have need for
capacity building/technical assistance support. CDF as
an capacity builder and technical assistance provider
has been providing support with price because this is
an self dependent income base program not donor supported
program. Hence those small and marginal NGOs are unable
to afford the cost base capacity building training or
technical assistance opportunity for the reason of fund
constraint. Thus CDF is seriously looking for alternative
support provider from anywhere for its Linkage Microcredit
NGOs capacity/technical assistance program