Microfinance changes economy of Dhanukhola village

Syful Islam back from Daudkandi, Comilla Many women in several villages of Daudkandi upazila under Comilla district now do not need to be puzzled every morning from where they will feed their family members, thanks to micro finance that helped them to be financially solvent. Shahida Begum (44) is one of the micro entrepreneurs who now owns two houses, three cows and a pond and who could send her elder son abroad and provide her husband with money to start business from her earnings. "We are now very happy as we three are earning a handsome amount of money every day. Nowadays we feel much confident about our future," Begum told this correspondent last week at her house in Dhanukhola village, some 40 kilometres south-east of the capital Dhaka. "I had only one small cottage where we could hardly accommodate our five-member family. Now we own another big four-room house where we can live comfortably," she added. Begum's three cows give 16 litres of milk a day which she sells in the nearest market at Tk 750. Her husband Shahid Mia earns from cattle and fish business while her son sends money from abroad which has made her financially sound. Fatema Begum (40) of Putia village under the same district started her journey with only Tk 500 as micro loan in 1993. With the money her husband Raj Mia began selling fishes and fruit in the nearest village market. From the earnings and other loans from micro finance institutions she now possesses 1.67 acres of land, has three ponds leased for fish production, and also has two cows which she is fattening to sell at higher prices. "Now I can send my sons and daughters to the school and madrasha while some of them are taking vocational training in the capital. Before entering the business I was struggling to feed them with my hubby's meagre earnings," she told this correspondent. According to the Human Development Report-2011 of the United Nations, 31 per cent population of the country still stands below the poverty line. Shahida and Fatema are loanees of the Centre for Community Development Assistance (CCDA), a non-government organisation funded by the International Fund for Agricultural Development (IFAD) through the state-owned Palli Karma Sahayak Foundation (PKSF). CCDA provides them with loan at some 23.5 per cent rate of interest, a bit higher than that of loans from the banks. These people hardly have access to the mainstream loans as they have nothing to give as mortgage in exchange for money. "But they could repay the loans as the loanees, mainly the women, are efficient in their business, and we monitor their projects to give them advice properly," CCDA's executive director M A Samad told the FE at his office in Daudkandi. "Our administrative cost is very high since we go from door to door of the loanees and monitor their projects for which we engage a good number of officials." The IFAD provides CCDA loan at 0.75 per cent rate of interest. CCDA works in five districts and has so far provided about Tk 5,648 million as micro loan to some 48,032 entrepreneurs. Their rate of loan recovery is 99.6 per cent as 'the loanees can repay their instalments timely from their earnings'. The NGO also provides loans to poor and ultra poor people for prawn and other fish culture in flood plains as well as ponds and provide them training for capacity building so that they can change their fate. Milan Rani Pal (35) of Rampur village of the same area is nowadays earning a good sum from her pottery business, with her husband Narayan Chandra Pal looking after the production and marketing of their venture. Their average income from the venture is some Tk 6,000 a month which Narayan thinks enough to feed his five-member family. "I have some money in hand to buy lands, but I can't since the prices have gone up as people of this area now possess much money. But we are happy with our living," Mr Pal told this correspondent. Their two daughters are studying at eighth and fifth grades while the only son has started to go to school.