The Role of an NGO in Bangladesh: ASA's Fund Collection and Distribution

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  • Topic: Microfinance, Debt, Credit
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  • Published : April 1, 2012
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Stamford University Bangladesh

Submitted To
Wahidur Rahaman
(Lecturer, Department of Business Administration

Submitted By
Name ID
Abu Saleh Moammed Shakil Reza : 02707956
Tasnim Rahman Rita : 02708060
Shakil Zerin Bony : 02707945 Program : BBA
Batch: 27
Section: C
Course Code: MGMT 461
Course Title: Operation & Mgt. Of NGO

Assignment On
Role of NGO in Bangladesh: Fund collection and distribution
ASA (Association for Social Advancement)

Submission Date: October 21, 2008
ASA (Association for Social Advancement) is a non-governmental organization based in Bangladesh which provides microcredit financing. It was established in 1978 by Shafiqual Haque Choudhury and microfinance lending began in 1991. Since then it has become one of the largest fully self-sufficient microfinance institutions in the world. Its mission is to "reduce poverty and improve the quality of life of the poor through the provision of qualitative and responsive micro finance services in an innovative and sustainable way" Operating Information: Up to June 2008 ASA's Cumulative Loan Disbursement was Taka 284,686 million. Loans outstanding Taka 33,904 million among 5.6 million borrowers. At the end of June 2008 ASA's Operational Self Sufficiency (OSS) is 269.2%, Financial Self-sufficiency 233.6% and rate of loan recovery 99.48%. Up to 2008 ASA operation expanded over 3,324 branches under 64 administrative areas all over in Bangladesh.

Collection/Sources of Fund

1) Owner’s Equity: The maximum amounts of their fund from their own and they used their fund at the starting point.

2) Donation:
a) Foreign Aid: Foreign people and some foreign institutions donate the NGO of under developed country to fulfill their need and increase their economic condition. b) Local Aid: Local some people and organization donate some amount to help the hard core poor people.

3) Bank Loan: NGO some times collect their very much need amount from the bank as loan in some critical situation.

4) Implemented Retain Earning / Profit / Revenue from Various Loan: NGO collect some revenue from their invested amount through loan enumerated as below: a) Small Loan(Women)
b) Small Loan(Men)
c) Small Business Loan
d) Small Entrepreneur Lending (SEL)
e) Supplementary Loan (BDS)
f) Education Loan
g) Hardcore Poor Loan

Distribution of Fund

ASA’s Microcredit & Financial Services
1) Small Loan (Women)
2) Small Loan (Men)
3) Hardcore poor loan
4) Development credit:
a) Small Entrepreneurs Lending (SEL)
b) Small Business Loan
5) Special credit:
a) Supplementary loan
b) Disaster management loan (interest free)
c) Monga loan
6) Education Loan
7) Health care Program

At present the number of ASA’s service receiving members is more then 7 million. They include the poor, hard core poor and lower middle class whose gross daily income is about one US dollar. At the beginning of 2008 ASA’s gross credit amounted to 8,500 taka or 130 US dollar. ASA’s all kinds of credit is personal collateral free and group guarantee free. Service charge for all credits is within 10% to 12.5%.

Small Loan (Women): Seventy one percent of ASA’s microcredit clients are women, most of these members are landless. At the initial stage rural women are given credit amounting to 70-110 US dollar and urban women, 150-310 US dollar. The income generating projects where the women generally invest the credit money are; cattle and poultry rearing, paddy husking, handicrafts, pisciculture, small trading etc. The tenure of this credit is one year, repayable in weekly installment. Because of its being encumbrance free and easy availability women feel comfortable with this credit. Till june 2008, the number...
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