YWCA of Bangladesh

women's economic empowerment program

 

Several researches performed by various renowned research groups, has shown that if the women in a relatively low income family has significant financial freedom, then a number of crucial problems faced by most of the women living in that socio-economic level can be eliminated. Most of the women living in the poor families of Bangladesh are depended on the income of their husbands or the other income generating male members of the family. So they are ill-treated and as a result, they face abusive incidents like physical harassment, mental tortures and in extreme cases even pushed to death. And the fact is so true that an immense percentage of women of Bangladesh, mostly from the poor families are continuously facing different types of tormented situation. Most of the incidents are kept untold as the women do not want to unwrap the family matters in public.

 

YWCA of Bangladesh has been working to resolve this issue by rendering Savings and Credit Program from the year of 1985, so that it can empower women in the extreme situations. Because YWCA strongly believes that if the women become financially independent, then most of the problems faced by them can reach to a resolution. Due to these rational motive, YWCA of Bangladesh has been rendering financial assistance to women in need to ensure empowerment by creating income generating activities, raising their incomes, building assets and finally increasing their way of living. By different initiatives of this program, they are getting the facilities to invest in various productive activities, gaining profit and saving a significant amount of money. So that they are having the complete control in every aspects of their lives and by using their outstanding potentials they are benefiting their own community by making the proper use of the local resources. Thus, the women's economic development program of YWCA of Bangladesh has been playing a very important role by offering microfinance related supports and other effective activities in reducing poverty and women empowerment.

They are from disadvantaged communities who are landless, selling labor mostly in a day basis job and whose total asset does not worth more than TK. 25,000. Working in a group enables the members to develop their own analysis of the existing situation and plan and implement solutions to problems. Group formation and institutional building is sometimes used as an early

intervention to create a sense of identity and shared interest among group members. This approach promotes internal control over savings and loan funds and is likely to bring about stronger identification with the projects to be initiated.

 

Participation in the micro finance scheme had manifold benefits on the women. Firstly, it made them organized. Formation of groups taught them the skills of working in a group get disciplined, punctual and mostly obtain leadership skills.

Sharing of experiences and life stories brought them close to each other and enhanced solidarity. Over these years the groups have become more organized, disciplined and regular in

savings. Regular savings of a group also indicates increased income of the members and  improved management capacity of the group.

The program generated a positive enthusiasm in the minds of its members as as a result, the total savings of the groups for the year 2011 was Taka 79,419,491.00. and the amount is 31%

higher than previous year. And mandatory savings in the savings groups could reach to 95%.

 

Credits: Credit is the principal element of microfinance activity under women’s economic development program which enables the members of the groups to invest in different income

generating activities to ultimately acclaim financial freedom.

YWCA of Bangladesh has been scaling up financial services to the disadvantaged women at community level through credit oriented services that they are able to improve their lifestyle and empower themselves. It is increasing opportunity to have enough access to credit for its group members in the name of income generation activities (IGAs) and thus assists them to

enhance their income and gradually earn a sustained livelihood.

Credit operation is being executed through a revolving loan fund (RLF) consisting of members contribution, YWCA’s own fund and donors’ contribution.

In the year 2011, the members seemed to be keen about receiving the loans as they have experienced from their other members who got loans in the previous years had a very  enchanting success stories. Because when a new member heard the story that by the proper use of the loan the old members had successfully run their individual activities like small scale cattle firms, grocery stores etc. then the newcomers also get inspired.

Involvement in income generation activities is a proven instrumental for empowerment of women. Findings showed about half of the beneficiaries (49%), who have some amount of loan, have reported that they have taken loan for their family businesses. About 32% of those who do not directly participate in income generating activities were found having substantial influence of deciding how and where to spend the money. Reports also shows that as a result of financial support average daily family income of at 74.47% target families has increased compared to last year.

Thus, in the reporting period a total of 11,851 members received loan from the groups which is 1233 higher than last year. About half of the beneficiaries who have some amount of loan, have reported that they have taken loan for their family businesses. On time repayment (OTR) position of loans has increased to 95% or over. Reports showed that 80% women members who took loan for family business are fully aware of where the money (loan) have been invested and have ownership on the profit.

 

Key features of Loans

Loan range : Tk. 5000 - 100,000

Interest rate : 12% flat

Repayment mechanism : Equal fortnightly installments

Loan products : General loan, business loan for small entrepreneurs In the year 2011, the Revolving Loan Fund amounted to TK. 79,419,491.00. A total of Taka 158,643,500.00 was

disbursed in 2011. In the last three years the following amount of loans were distributed annually, 80,377,062 ; 122065,110; 158,643,500.00. In percentage the growth trend of loan distribution in 40.32% and 34.15%; 30,47%.

The loan realization rate in the reporting period has also been quite satisfactory. The total loan realized from 13 local branches was Taka 133,338,041 that is Taka 39,162,092 more than last year. The following graph shows the trend in increase of loan realization.

The total recovery rate is around 89.7% The over due rate stands 5.62% which was 3.67% in the last fiscal year. The total amount of service charge collected in the reporting period was TK. 16,627,330 which was 11,651,500 in last reporting year. Besides, a total of TK.3,818,564 was distributed as dividends to the members.

It is a proven that empowerment of women will be achieved only if the women's involvement in income generation activity is ensured. About 32% of those who do not directly participate in income generating activities were found having substantial influence of deciding how and where to spend the money. Reports also shows that as a result of financial support average daily family income of at 74.47% target families has increased compared to last year.

In the every group of the program a strong emphasis has given specially on the aspect of self-reliance through livelihood development and institution building at the same time. It has  brought significant changes in the living standard and lifestyle of the group members that include positive alteration in values, functions, physical and social technologies. Its approach in the process of institution building has already been proved to be a thriving measure which not only brings financial advantages in the life of the beneficiaries rather it empowers them which

only ends in sustainable development. The savings groups are not only meant for participating in monthly savings and loan scheme but also to share each others experience, knowledge and reciprocal learning.

Along with financial assistance YWCA also provides them information on women’s rights, their roles and responsibilities in the society and also unites them so that they can take organized efforts to fight against injustice. In the reporting period YWCA organized number of grass-roots level workshops, campaigns, yard meetings on women’s rights and gender equity. Obviously, these cannot bring changes over night. It requires time. But with no doubt, they have had tremendous affect on the society especially on women. It gave them the ability for self realization. The capacity to analyze their own situation, ascertain their needs, their roles and responsibilities in the family and society. They are now confident enough to speak for themselves. They are also taking active part in family decision making. Reports showed that around 80% of the members who took loan are well aware of the money are invested for.

There are a number of new things revealed to us from last year's activity that can be very helpful for our next year's planning and activities.

To make the program self supported and also to bring the benefit to more people there is for increasing the total capital. To do this YWCA needs to provide more matching funds to the samities and also the group savings needs to be increased. Besides, more sincere efforts is needed in reducing individual share withdrawn by the members.

There is an increasing demand among the members especially the entrepreneurs for bigger loans. Therefore the loan ceiling has to be broadened. Though the number of loaners in increasing in each year but more efforts are needed to encourage people for initiating

profitable ventures and involving themselves in Income Generation. The Micro-finance groups should not only be seen as an institute to save money only. Selecting right members for micro-finance groups is also very important for making the program sustainable and self supportive.

Thus the year 2011 was very inspiring period for the new members in the program as they have shared that for the very first time, they got the opportunity to hear the experiences and success stories of the current members and become inspired. As the women form the low income segments do not have the access to any other information sources like television, newspapers etc, according to them, the Savings and credit program is the best place for them to discuss and share experiences with the successful women in their same socio-economic level. And it makes them more enthusiastic to improve their lives more effectively as they have seen that if a  woman from her similar socio-economic structure can experience the success of financial freedom, then why not she.

YWCA plans to expand its savings and credit activity in some more places. And along with the loan facilities, it will also arrange seminars and other activities which will be helpful for the members to utilize the loans in some new fields also which can help them to reach the ultimate stage of financial freedom.