Microfinance is a way to promote economic development, employment and growth through supporting micro-entrepreneurs and small businesses. It is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services.

The leading program of Organisation for Social Advancement & Cultural Activities (OSACA) is microfinance which started in 1997. OSACA provides access to financial services to those poverty-stricken people. The borrowers, mainly women, take the loan to get their families engaged in various income generating activities. Thus the person who has no asset and who is deprived of credit from any banks is coming out of the vicious cycle of poverty and contributing to Bangladesh’s Gross Domestic Product by getting access to financial services through OSACA. The members of the group willing to take loans also generate their funds through savings mandatorily. The growth of savings is considered as a part of micro financing. The regularity in savings is a very good indicator of better discipline in the group and its credit activities. Any member from any group can overcome the period of financial crisis by using the saved money. OSACA’s savings program empowers its beneficiaries by facilitating formation of capital in a capital starved country like Bangladesh. Efficient management system and tools, linkage with other financial institutions, identification of alternative micro-schemes, approach to discuss the poorest of the poor section and access to the remotest and hard to reach locations have ensured an exquisite place for OSACA’s microfinance program. OSACA led Microfinance program follows an integrated micro-credit and social development approach which in turn plays a significant role in meeting the UN declared Sustainable Development Goals.

Source of Fund

Organisation for Social Advancement and Cultural Activities (OSACA) receives credit funds and working support from Palli Karma-Sahayak Foundation (PKSF) and other national as well as international financing agencies.

Area Coverage

Pabna, Natore, Sirajgonj, Rajshahi, Naogaon, Bogura & Kushtia Districts

Partner in Development:

Palli-Karma Sahayak Foundation (PKSF)

Sectors of Microfinance Program

• Agriculture
• Small Enterprises
• Livestock Rearing
• Poultry
• Construction of Houses
• Household Appliances
• Livestock Business, etc.

Objectives

• Bringing about a qualitative and substantive change in the life of the beneficiaries.
• Empowering the poor and making them self-reliant thereby.
• Helping the poor to start their own business with the capital formed by them.
• Creating income generating sources to help the poor afford basics like running water, better food, health services and schooling for their children.

Formation of Groups

The first step of forming a group ascertains whether a person belongs to the marginal class or not. A group is generally formed with only 10 members and it can be of any number below 30.The ideal age of the group members ranges from 18 to 50. Women will be the sole members of all these groups. The members of all the groups must deposit money to boost up their savings. The savings of a person will return if that person leaves OSACA willingly or unwillingly.

Impact of the Program

The program has left a positive impact on the beneficiaries.

• Most of the borrowers can sign; the achievement which was not possible before.
• Most of the beneficiaries are now aware of their health and hygiene related duties.
• People have learnt not to overlook the issues related to environment.
• More than 35000 women can read and write.
• OSACA’s borrowers have been empowered socially and financially.

Table 3: Achievements up to November 2024