Social Business

Micro Finance Program/ Social Business

Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services. More broadly, it is a movement whose object is a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savingsinsurance, and fund transfers. Those who promote microfinance generally believe that such access will help poor people out of poverty. In developing economies and particularly in the rural areas, many activities that would be classified in the developed world as financial are not monetized: that is, money is not used to carry them out. Almost by definition, poor people have very little money. But circumstances often arise in their lives in which they need money or the things money can buy.


SAP-Bangladesh started its micro-credit program in the late eighties. Initially, it was an experiment and the program operated in remote islands of the coastal belt. With the initial experience, SAP- Bangladesh expanded this program at Belkuchi Upazila of Sirajganj District in 2002. After successful experimentation both in islands and main lands, SAP-Bangladesh decided to expand this program to other parts of the country. With a dream of expansion, SAP-Bangladesh became a partner of apex financing organization PKSF in October 2004. Since then, the program has been strengthened and is running quite smoothly. A panel of experts has been engaged to expand the micro-finance program.


Goal of the program

Poverty alleviation and ensure socio-economic development of disadvantaged people especially women.



·         To provide better financial services for the poor.

·         To provide Micro-credit support to beneficiaries for self-employment and enterprise development.

·         To promote community organizations of poor women for self-help and sustainable development.

·         To eliminate poverty among hardcore poor and poor people once and forever.

·         To develop social awareness & leadership among beneficiaries through weekly meeting

·         Develop and adopt a savings utilization policy ensuring maximum benefit of the target beneficiaries.


Funding Agency

·         Palli Karma-Sahayak Foundation (PKSF)

·         Anukul Foundation, MDF

·         Self fund


Major Components of SAP-BD’s Microfinance

·         Group Formation

·         Awareness build up

·         Savings Mobilization

·         Loan Disbursement

·         IGA related Training


Program Beneficiaries

At present, total 27,671 peoples are the direct beneficiaries of SAP-Bangladesh’s micro-finance program while 1234 are male and 26,437 are female. The indirect beneficiaries are about 130,676. SAP-Bangladesh maintains following criteria for selecting its beneficiaries.

·         Landless poor people focusing women

·         People who own less than half an acre of land

·         People who earn their living by selling manual labor, and:

·         The hard core poor, who live below poverty line.


Credit Products:

·         Rural Micro credit (RMC)

·         Urban Micro credit (UMC)

·         Micro Enterprise (ME)

·         Ultra poor (UP)

·         Agriculture Sector Micro Credit Program (AMP)

·         Seasonal Loan (SL)


Savings Products:

·         Mandatory Savings

·         Voluntary Savings

·         Long Term Savings