Microcredit for the youth

CMES organized a credit scheme for the income generating activities of the adolescent girls, and other disadvantaged youth. This is a Grameen Bank style microcredit scheme managed by a dedicated central and field staff within CMES Microcredit Wing. CMES has been the pioneer in this respect by giving adolescents as well as young adults access to credit irrespective of the marital status of the women. The credit is implemented and expanded mostly with the fund borrowed from PKSF.

The management & organization

The microcredit wing works through the Program Manager (microcredit) and the credit staff at the service centre, along with the field credit staff including Regional Manager, Credit Manager, Credit Officers and other credit staff. All had an intensive training on the credit system, at the Training Centre in CMES and some at external training facilities such as organized by PKSF. In every Unit these trained staff members formed a work-force to manage the loans within the Program. The groups are formed, loan proposals are received and studied and later are recommended to the Regional manager and Program manager in charge at the Service Centre. In the regular meetings of the Loan Review Committee these proposals are approved and the loans are duly disbursed. The credit staff at the field conducts the repayment and monitoring activities, and keeps close contact with the on-going empowerment program for the loanees.

Some statistics about microcredit program

Cumulative Loan Information (in Bangladesh Taka)

Up to 31st May 2009

Total Participants	Present Loanees	Cumulative Loanees	Total Realization	Total Disbursement	Total Outstanding
35212	16625	81870	524283947	607,479,200	83195253

1 US$ ≈70 Taka

Loans and corresponding activities

The size of each loan is between Tk. 3000 and Tk.30,000. The loans are repayable in 45 weekly instalments. In the management of the loans, an emphasis is given on whether the young loanee herself, rather than her parents, are in control of the business and the income. The credit scheme is designed as a training capacity building in financial activities adolescents and youth, leading to an empowering financial self-reliance through cash income.

So far, members have taken loans for the following activities:

Cow rearing	Garments	Goat rearing and poultry
Paddy husking and Paddy business	General Stores	Grocery shops
Handicraft	Betel leaf cultivation	Fishing net weaving
Hawkers business	Sweetmeat business	Puffed rice
Tea stalls	Nursery	Cloth trading
Managing Rickshaw	Rickshaw and Cycle garage	Wheat husking
Wheat and Rice business	Candy Making	Fish culture
Laundry	Stationary	Confectionery
Photography	Pharmacy	Home Gardening
Food processing	Beauty parlour	Shoe stores
Mini flour Mills	Vermi-compost

CMES has recently started Micro Enterprise loan programme. The size of each loan is between Tk. 30,000/- to 50,000/- through these more experienced young people are going for bigger efforts in income generating activities.