1

Chapter-1

Introduction
Micro credit is the extension of very small loans (micro loans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not considered bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. Micro credit is a part of microfinance, which is the provision of financial services to the very poor; apart from loans, it includes savings, microinsurance and other financial innovations. Micro credit is financial innovations which originated in developing countries where it has successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases, begin to build wealth and exit poverty. Due to the success of micro credit, many in the traditional banking industry have begun to realize that these micro credit borrowers should more correctly be categorized as pre-bankable; thus, micro credit is increasingly gaining credibility in the mainstream finance industry and many traditional large finance organizations are contemplating microcredit projects as a source of future growth. Although almost everyone in larger development organizations discounted the likelihood of success of microcredit when it was begun in its modern incarnation as pilot projects with ACCION and Muhammad Yunus in the mid-1970s, the United Nations declared 2005 the International Year of Micro credit.

Definition of NGO:
A non-government organization (NGO) is an organization that is not part of a government and was not founded by States. The phrase nongovernmental organization came into use with the establishment of the United Nations in 1945.

Types of NGO:
There are also numerous classifications of NGOs. The typology the World Bank uses divides them into Operational and Advocacy. The primary purpose of an operational NGO is to design and implementation of development-related projects. The primary purpose of an Advocacy NGO is to defend or promote a specific cause. These organizations typically try to raise awareness, acceptance and knowledge by lobbying, press work and activist events.

History of the TMSS:

Thengamara Mohila Sabuj Sangha (TMSS) is a National NGO, which is working for poverty alleviation, Socio-Economic Development and empowerment of Women. The beggar women of Thengamara village of Bogra district established this organization in 1980; while most of the people of the area used to live hands to mouths. Thengamara village or the Head Office of TMSS is Located at about 6 kms away towards the north of Bogra town and by the side of Bogra-Rangpur highway. Within a few days of its inception, the management of TMSS came under the prudent and dynamic leadership of Prof. Dr. Hosne-Ara Begum. Since the beginning, TMSS believes that family is the focal point of social development and it always gives emphasis on capacity building of absolute poor and hard-core poor and also of vulnerable women groups in the society and utilization of untapped local resources for poverty reduction. By this period 1.9 Million women were organized into groups within its operational area (throughout Bangladesh covering 63 districts) and brought them in the mainstream of development process and help them to gain self-reliance through designing and implementing of innovative Projects. TMSS provides services to the target groups through establishment of Institutions and emphasizes on Institution-building to strengthen the development interventions for the poor. The target beneficiaries are women and mostly from ultra-hard-core and hard-core poor families having no or below 50 decimals of land in households. The organization forms groups with the women who are living below the poverty line. For institutional building it has formed various groups and providing different support services for strengthening these groups. The support services include training on Group Formation, Formation of Professional Groups/Society, Organizational Development & Management, Legal Coverage, and Phasing-out & Referral Services.

Vision:
Happy and prosperous Women in the Society

Mission:
TMSS provides its best efforts in bringing the poor Womenfolk's living conditions at a dignified level in the family and society through their capacity building, optimum use of their own/available resources,

participation in development activities and fulfillment of their legitimate rights.

Goal:
Women empowerment.

Main Slogan:
Let family be the center of women development

Objectives:
Prime objective of TMSS is to develop the present socio-economic conditions of the targeted beneficiaries through execution of their decision and using unutilized local resources of this area. The specific objectives are; - Organization building with the targeted beneficiaries; - Raising awareness and develop human resources; - Remove illiteracy through education & training; - Skill development and create employment; - Local fund development by the beneficiary; - Arrange necessary credit facilities; - Provide technical and financial support for income generating activities; - Remove gender disparity; - Improve health status for children & women; - Identification & Utilization of Local Resources; - Ensure development of Agriculture, Forestry, Livestock, Environment, and Sanitation; - Increases GO, NGO co-ordination and cooperation; - Disaster management & rehabilitation work; - Conduct social/action Research; - Capacity building of local partner, NGO's etc which are working for women empowerment; - Promote participatory planning for beneficiaries; - Ensure good governance.

Chapter-2

Scope of the Study

This report mainly focuses on the Micro credit management of Thengamara Mohila Sabuj Sangha (TMSS). The proposed study will show the activities by which they play an important role in economic development of the country.

Rational for Selecting TMSS:

Thengamara Mohila sabuj Sangha (TMSS) was chosen for the study because of its proximity and gathering work experience with the very challenging job, also for the increasing popularity of micro credit as a useful tool for developing living conditions of poor people.

Objective of the Study:

The main objective of this study is to identify and analyze the microcredit management system of this organization. Analyzing the various activities of a NGO is a well-established tool to identify the role in economic development of the NGO.

Data Collection Methods:

Method of collecting information is one of the important matters to conduct a survey smoothly. Because by searching adequately, we can get relevant information about the subject matter. For our present study, we have been collected data basically from two sources; 1. Primary Sources: Primary sources are bared on interviews, conducted for different group of respondents i.e. management and beneficiaries. 2. Secondary Sources: The source of secondary data is the official record of the TMSS and their web pages. I have also collected some published and research report, books, journals, articles to fill up the information gap.

Source of Data Collection:

To prepare this report I used the following sources of data collection; 1) Direct interview and 2) Personal communication.

1. Direct Interview Methods: I have collected information and data by direct interviewing of the executives, officers and staffs of the TMSS. 2. Personal Communication: I have gathered data through personal discussion with the officers of different level employees of the TMSS. They provide information about NGO operations.

Justification of the Study:

This study will have both practical and academic value. It will help me to get a clear idea about the NGO and its micro credit management system. On the other hand the findings of the study will help to take appropriate actions and steps for the development of the NGO.

Limitations of the Study:

This internship report is my first assignment outside our course curriculum in my practical life. I have just completed the formal education stage. After completing the institutional experience, practical performance in the formal stage become very difficult. So in Performing this report our lack of proper knowledge greatly influenced in this performance. Besides the above, we have to face some other limitations are; 1) Lack of availability of the data. 2) Up-to-date information was not available. 3) Sufficient records, Publications fats and figures are not available. These constraints narrowed the scope of the real analysis. 4) For the reason of confidentiality, some useful information can not be expressed in this report. 5) Lake of actual data about the NGO. 6) Secondary data is not reliable for the proper figure of the NGO. 7) Lack of availability of the information about the NGO in online. 8) Inappropriate method of data collection. Due to Secrecy, the authority of the NGO does not able to provide the accurate information, which is most important to take the decision about the NGO in the country.

Chapter-3

TMSS at a Glance
Geographical Identity
Population Covered Villages & Slams Covered Thana Covered District Covered Water-Body Under Fisheries Land Under Agriculture Union Covered Village Organizations (Para Group) 1.9 Million 17775 270 63 400+ Acres 650+ Acres 2707 22612

Financial Support
No. Groups Number of Branches No. of Total Credit Staff Credit Beneficiaries Families Loan Borrowers Total Savings Amount Savings Balance Loan Disbursed Loan Outstanding 46282 663 3055 958467 463543 Tk. 2109180944 Tk. 761762313 Tk. 1138084334 Tk. 1798864334

Job Creation
Livestock Poultry Social Forestry Agriculture Horticulture AgroForestry Fisheries Handicraft Producers Small Traders Small Enterprises Api Culture Others 48000 45050 39165 58899 175 1120 2240 8500 12250 16749 109 40022

Human Resources
Consultants(Full Time) Legal Adviser Resource Person Community Veterinarians Community Health Workers Community Nutrition Organizer Nutrition Women Workers 13 15 50 28 149 218 23551

Poultry Workers Teachers(Non Formal) Teachers(Formal) Staff Volunteer Adolescent Voulnteer Doctors (MBBS) Full time Contract Staff Personnel Community Nutrition Promoter Specialized Doctors (Part time) Medical Assistant Staff Nurse X Ray Man Pathologist Paramedics Health Worker Clinical Assistant

390 63 53 4703 7000 138 15 93 2141 08 48 20 02 02 49 49 49

Program Infrastructure
Branch Offices Area Offices Zonal Offices 663 65 17

Health Centers Diagnostic Laboratories Training & Resource Centers Community Nutrition Centers Sub / Satellite Clinic Community Hospital (RCH) Formal School Vocational Training Center Non Formal Education Center Libraries Handicraft Production Ceters Primary School Head Office Foundation Office

31 01 01 2141 65 01 01 01 130 02 4 01 01 01

Program Support Enterprises

Poultry Farms Poultry Hatcheries Fish Hatcheries Sericulture- Silk Reeling Centers Nurseries Rice Husking Mill 04 01 01 01 26 01

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Commercial Projects
Shops (UTPADON outlet) Printing Press Food Project Rural Market Women Market Packaging Industry Departmental Store Seed Sector (R&D) Pharmacy Restaurant Training Venue & Dormitory Agriculture Farm Business Service Center Demontration Production Pond Agricultural Field Forest (TDS) Export (Earning) Sand Field 09 01 01 02 01 01 02 01 01 03 06 02 02 109 300 Acre 95 Acre 11 41.40 Acre

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Education
1. TMSS Technical Institute (TTI) 2. TMSS Medical Training Institute (TMTI) 3. TMSS Medical Institute of Research & Technology 4. Pundra University of Science & Technology (PUST) 5. Ansar - Hosne Ara Degree College 6. Madrasha 7. Orphanage 8. Kinder Garten School

TMSS Governance:
TMSS is governed by its registered Constitution, framed out Policies, Rules & Regulations. Decisions of AGM and the working procedures of the Peoples Republic of Bangladesh Voluntary Social Welfare Agencies (Registration & Control) Ordinance of 1961 and Foreign Donation (Voluntary Activities) Regulation Ordinance of 1961. Apart from these, a 15 member Executive Committee (elected every after 3 years by direct voting of General Body Members & Regular Subscriber Members) ensures the proper governance of TMSS on behalf of the women members. The General Body Members are the Chairperson of the Village Organization of TMSS.

Legal Status (Registration Authorities):

TMSS is registered by the following govt. Departments / Directorates for carrying out different types of activities for socio-economic development of its beneficiaries; 1. Regn. 1494, dated 10.11.1964, Social Welfare Department (At present Social Service department); 2. Regn. 717/80/885 (106) Dated 8.9.1980, Women and Children Affairs Directorate; 3. Regn.- 5 Dated 16.10.1985, Health and Family Planning Directorate (Last renewed dated 11.09.04, No. 61/04);

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4. Regn. DSS/FDO/R-241, Dated 05.10.1987, External Resource Division (At present Economic Relations Division) (Renewed Dated 05.10.2002); 5. Regn. DNC 0036, Dated 01/01/2005, Department of Narcotics Control.

TMSS Management:
TMSS is a people's organization and it always strictly emphasizes on participatory and democratic approach for running organizational activities. 1. General Committee: General Committee is considered as the foundation of TMSS body. At present there are 1240 members in the general committee (all of them are women). Out of them about 2/3 are the beneficiary of this organization. The general committee elects the Executive Committee and meets once in every year. If necessary, it can hold special meeting on emergent matters as and when required. 2. Executive Committee: TMSS Executive committee consists of 15 members and they are elected by the general committee in every 3-year. Mainly this committee is responsible for appointing the Executive Director and selecting the CA Farm for auditing TMSS financial position. The EC also contributes in formulating TMSS policies and provides consultancies and guidelines to run the organization. This committee consists of the following positions: Sl. # 01 02 Name Member's of Position Main profession Social Worker & Ex. Teacher Retired Associate Professor, Govt. Azizul Haque University College, Bogra. Social Worker & Life

Mrs. Mahmuda Chairperson Begum Rtn. Prof. Dilara Iqbal Mir ViceChairperson

03

Mrs. Minati Akter

Secretary

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Member, Red Crescent Society, Bogra Unit. 04 Mrs. Shamima Assistant Begum Secretary Mrs. Hosen Ayesha Treasurer Social Worker Ex. Member of Gokul Union Parishad, Bogra. Social Worker Executive TMSS, Bogra. Director,

05 06

Prof. Dr. Hosne- MemberAra Begum (by Secretary Designation) Rtn. PP Asia Member Akkas (Rani) Prof. Nasima " Akter (Joly) Mrs. Mira Begum Mrs. Lutfunnesa " "

07 08

P.P Rotary Club of Bogra Karotoa. Senior Project Coordinator The Hunger Project, Dhaka. Member, Majhira Union Parishad, Bogra. Social Worker & Chairperson of Palashbari Sromojibi Mohila Sakty. Social Worker & Daughter of Late Fatema Bewa, Founder of TMSS. Teacher, Mohishbathan Girls' School Teacher, Khatemun Adarsha Shishu Niketon, Thengamara, Bogra. Social Worker. Social Worker.

09 10

11

Mrs. Begum Mrs. Begum Mrs. Begum Mrs. Begum Mrs. Begum

Amina "

12 13

Aysha " Jharna "

14 15

Shahida " Afroza "

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Organogram of Thengamara Mohila Sabuj Sangha (TMSS)

General member

Consultant

Executive Committee

Advisor

Executive Director

Director

Joint Director

Deputy Director

Assistant Director

Zonal Manager

Area Manager

Branch Manager

Supervisor

Village Organizer

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Membership:
Aquaculture for Fish Development Forum (AFDF) Association of Development Agencies in Bangladesh (ADAB) Association for Land Reform and Development (ALRD) Association for Women in Development (AWID) Bangladesh Human Rights Commission (BHRC) Bangladesh Nursery Owner`s Association Bangladesh Salish Network, Dhaka Bangladesh Shishu Adhikar Forum (BSAF) Bangladesh Women Chamber of Business & Industries (BWCBI) Bogra Metal Engineering Entrepreneurs Group (BMEEG) Coalition of Environmental NGOs (CEN) Coalition of Urban Poor (CUP) Community Development Library (CDL) Commonwealth Liaison Unit Bangladesh (CLU-B) Coordinating Counsel of Human Right Bangladesh (CCHRB) Credit and Development Forum (CDF) District NGO Coordination Committee (DNCC) Federation of NGO`s in Bangladesh (FNB) Forum for Participatory Education and Development (FPED) Forum for Regenerative Agriculture Movement (FORAM) International Association for Volunteer Effort (IAVE) Inter-fish Forum International Water Association (IWA) International Women Day Celebrating Committee (IWDCC)

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Networking Collaboration:
ACCION Agricultural Development Network (ADN) Amnesty International Asia Pacific Agroforestry Network (APAN) Bangladesh Agriculture Research Council (BARC) Bangladesh Agriculture Research Institute (BARI) Bangladesh Water partnership (BWP) Bogra Pawrasova/Municipality Bogra CIRDAP Women Intervention Network (WIN) GARNET (ICDDR-B) Global Water Partnership (GWP) International Service Center (ISC) Pirgonj Pawrasova/Municipality, Rangpur Rural Development Academy (RDA) UN Commission for the Status of Women (CSW) United Nation Information and Education Services (UNIES) Women Tribune Center World Wide Network (WWN)

Present Development Partners:

Asian Development Bank. (ADB) Australian High Commission British Council & NICARE Bangladesh Bank Canadian High commission /CIDA Local Govt. Engineering Department (LGED) Ministry of Women Childrens Affairs Ministry of Health Mennonite Central Committee (MCC) National Democratic Instituted (NDI) &

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CARE-Bangladesh Department of Public Engineering (DPHE) Health

NNP & Palli Karma-Sahayak Foundation (PKSF)

Department of Agriculture Extension Rotary International (DAE) Directorate of Women Affairs (DWA) Department of Family Welfare Department of Forestry, Department of Fisheries Department of Livestock (DLS) FAO European Commission Royal Embassy/DANIDA Danish

Social Development Foundation (SDF) Seed Industries Development (SID) South Asia Partnership (SAP) Terre des Homes-Netherlands (TDH-NL) UNICEF World Bank

German Technical Cooperation (GTZ), World Fish Center (ICLARM)/ JOBS USAID International (ILO) IFAD Labour Organization Women Entrepreneurs Association (WEA) World Food Program (WFP)

Infrastructure Development Company Unilever Bangladesh Limited Ltd. (IDCOL) Japan Embassy Jatiyo Mohila Sangstha (JMS) JICA / JOCV UNDP DFID German Embassy UNFPA DNFE

TMSS Strategy:
TMSS adopts the following strategies during project implementation; Identification of target beneficiaries; Preparation of beneficiaries' database record through benchmark survey; Beneficiaries' group development; Need assessment of beneficiaries;

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Beneficiaries' personal development through awareness or necessary training; Development of Package Service Delivery to clients/beneficiaries; In time, monitoring and evaluation; Demand driven support i.e. need based approach; Involve beneficiaries' participation for development initiatives; Focus on hard-core & ultra hard-core beneficiaries; Involvements the GO & P-NGO's; Involvements of concerned stakeholders; Promotion of behavioral changes; Gender sensitiveness; Capacity development of clients beneficiaries and local management; Ensure quality and quantity; Control time lines; Maximum utilization of local resources; Guide the beneficiary so that they can help themselves; Involve low cost technology, but maximum output.

Clients / Beneficiaries:
TMSS works with; A. Ultra Hard-Core Poor B. Hard-Core Poor/Poorest C. Poor D. Progressive Member/Small & Medium Entrepreneur E. Other Community People F. Sister Organization G. Partner Organization

TMSS Programs:
In Bangladesh TMSS is the Nation wide Women NGO, which is addressing mainly the need-based activities for the development of its targeted beneficiaries who lies in different parts of the country. The need of the beneficiary differs from area to area, from beneficiary to beneficiary. In aim to fulfill the present need of beneficiaries the following programs /Activities have been undertaken; Social Development: 1. Institution Building 2. Awareness, Mobilization and Campaign

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3. Support to the disable people 4. Optimum use of local recourses Shelter Health: 1. Health & family Planning 2. Nutrition, Water & Sanitation Health Institution: 1. Food Processing & Packaging 2. Weaving 3. Handicraft and Linkage 4. Sericulture Micro Finance: 1. Micro Credit & Micro Entreprise 2. Micro finance for Technical 3. Flexible Micro Credit for hard core poor 4. Savings and need base financial support Business/Promotion Venture: 1. Enterprise Development 2. Commercial Business 3. Marketing & Networking Education: 1. Formal 2. Non-formal Life-skill Human Rights & Gender: 1. Advocacy & Lobbying 2. Capacity Development 3. Women , Child & Gender Development and Trafficking 4. Legal Support, Dispute & Settlement 5. Good governance

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Fisheries & Livestock: 1. Fish culture, Poultry & hatchery 2. Dairy & Goat rearing 3. Technology Transfer Environment & Forestry: 1. Nursery & Tree deposit. skim 2. Renewal energy 3. Bio-mass plant & Forestry 4. Technology Transfer Agriculture: 1. Vegetable gardening 2. Agricultural Production, Crop diversification 3. Seed promotion production and disbursement 4. Technology Transfer Disaster Management: 1. Preparedness 2. Relief 3. Rehabilitation Training: 1. Human Development 2. Skill development Training 3. Cultural Activities

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Chapter-4

Credit Program
I am working on the topic Micro Credit Management of TMSS. Microcredit is an extremely small loan given to impoverished people to help them become self employed, also known as "micro-lending." TMSS offers many credit programs to develop the economic condition of the rural and urban poor peoples.

Major Objectives:
TMSS conducted micro credit program include the following objectives; To empower the poor vulnerable women and reduce their poverty, To utilize their own resources for income-generating activities, To create employment/self-employment opportunities for the poor people, and To initiate the creativity of the poor family.

Types of Credit Program:

Credit programs offered by TMSS include the followings; Rural Micro-Credit (RMC): The objective of this credit program is to undertake the rural poor in groups for the improvement of their livelihood. This will helps in the use of unusual or under used resources which will create job opportunities and increase the income generating activities of the rural poor as well. At present this program is implementing in 7828 villages in 1133 unions of 148 Upazilla in 31 district of Bangladesh with the help of PKSF. This program started in 1985 and counting till now Tk. 1049430680 has been disbursed. Urban Micro-Credit (UMC): The program is implementing for urban poor people to improve their overall improvement. It was started from 1999 and it is being implemented with the help of PKSF in 3393 villages (area) of 657 unions under 109 Upazilla in 34 districts.

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Financial Services for the Poorest (FSP): This is a special type of financial services for the poorest people. Under this service, it is conducted family survey, member selection, group development, awareness, activities selection, income-generating activities, training and flexible credit support. Till date, Tk. 34356500 has been disbursed among 9040 families. This program has been operating in 10 unions of 1 upazila under Bogra district with the assistance of PKSF Micro Enterprise (ME): This program is for the graduated members of micro-credit and those are eligible who have improved their investment ability with job creations of others. ME program is operated with assistance of PKSF and this program is running in 1737 villages of 253 union. Financial Services for the Poorest (FSP): This is a special type of financial services for the poorest people. Under this service, it is conducted family survey, member selection, group development, awareness, activities selection, income-generating activities, training and flexible credit support. Till date, Tk. 34356500 has been disbursed among 9040 families. This program has been operating in 10 unions of 1 upazila under Bogra district with the assistance of PKSF. Ultra Poor Program (UPP): This type of credit scheme is being implemented for those who are mostly landless or having land below .05 decimals, no savings, earn by selling physical labour, unable to arrange three times meal a day, unable to spent money for education and purchase clothing, and having no assets. This group of people is untouched and they have not yet brought in to the mainstream of development, but TMSS has given special emphasis to involve them under micro-finance program. TMSS has already disbursed Tk. 953843400. This project has been implementing in 2065 villages of 23 districts, 36 upazilas and 322 unions with the assistance of PKSF MFMSF: The aims of this project are for finical support to the marginal and small farmers for their investment in existing agricultural practices and non agricultural business. Besides this type of loan will help in improved crop production practices and other income generating activities through technical support which will help in long term participate increase of income and food security. This program is operating in 409 villages of 74 unions under 15 Upazilla of 6 districts.

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Micro Finance and Technical support (MFTS): This project is going with the help of PKSF in 515 villages of 72 Unions under 12 Upazilla in 02 districts. Till date Tk 141460000/- has been distributed among the 14883 beneficiaries Seasonal Loan (SL): This project is going with the help of PKSF in 26 villages of 14 Unions under 05 Upazilla in 02 districts. A total sum of Tk 6093000/- has been distributed among the 1138 beneficiaries. Livelihood Restoration Program (LRP): This project is going with the help of PKSF in 350 villages of 265 Unions under 159 Upazilla in 20 districts. A total sum of Tk 12395500/- has been distributed among the 5610 beneficiaries. Ultra Poor Pilot Program (UPPP-under PLDP-II): This Program is going on in 11 villages of 07 Unions under 04 Upazilla in 03 districts. With the help of PKSF a sum of Tk 711500/- has been. distributed among the 529 beneficiaries. Savings program: TMSS was initiated through savings activities. Savings is encouraged for accumulation of fund and to get rid of poverty. The accumulated fund is utilized as per planning capacity and capacity of the incumbent with a view to reduce poverty. The impact of these will be Socio-Economic upliftment through poverty alleviation and reduction of unemployment. To create own capital is not possible without savings and individual decision cannot be implemented without it as well. For this reason, TMSS used to adapt some steps to make them savings oriented. Major Objectives: The objectives of savings service of TMSS are as under; 1. To minimize financial crisis & poverty elimination of group members. 2. To change beneficiaries attitude and make them savings minded 3. To ensure and increase participatory investment in any project 4. To raise women empowerment in the society

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TMSS Loan Products and Related Conditions:

Flexible Credit for HardCore Poor a) Loan period: Maximum 1 year c) Grace Period: Project base e) Rate of Interest: 5%-10% a) Loan period: Maximum 1 year c) Grace Period: 24 weeks e) Rate of Interest: 12.5% a) Loan period: Maximum 3 years c) Grace Period: Maximum 3 month e) Rate of Interest: 12.5% a) Loan period: Maximum 10 years c) Grace Period: 6 month e) Rate of Interest: 5% a) Loan Period: Maximum 1 year c) Grace Period: 2 weeks e) Rate of Interest: 0-10% a) Loan Period: Maximum 1 year b) Payment frequency: Contract base d) Maximum loan Amount Tk: 5,000/= f) Flexible Saving b) Payment frequency: Weekly d) Maximum loan Amount Tk: 20,000/

Micro Credit for the Poor (Rural & Urban)

Micro Enterprise for Job Creation of Hard-core Poor

b) Payment frequency: Monthly / contract base d) Maximum loan Amount: 3 lacs

Housing Loan

b) Payment frequency: Monthly d) Maximum loan Amount: Tk. 20,000/=

Sanitary Loan

b) Payment frequency: Weekly / contract d) Maximum loan Amount: Tk. 2,000/=

Livestock Loan

b) Payment frequency: Contract base

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c) Grace Period: d) Maximum loan Contract base Amount: Tk. 20,000 e) Rate of Interest: 12.5% Fish Cultivation Loan a) Loan Period: Maximum 1 year c) Grace Period: Contract base e) Rate of Interest: 5%-12.5% b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 20,000/=

Investment Loan (Pond & a) Loan Period: Firm) Maximum 5 years c) Grace Period: Contract base e) Rate of Interest: 5%-12.5% Education Loan a) Loan period: Maximum 10 years c) Grace Period: Contract base e) Rate of Interest: 5%-10% a) Loan Period: Maximum 1 year c) Grace Period: Contract base e) Rate of Interest: 8%-12.5% a) Loan Period: Maximum 3 years c) Grace Period: Contract base e) Rate of Interest: 7%-10%

b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 50,000/=

b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 3,00,000/=

Crop Loan

b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 25,000/=

Consumer Loan

b) Payment frequency: Contract base d) Maximum loan Amount: Tk. 3,00,000/=

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Category of Borrowers:
1. Ultra-Hard Core Poor: I) Asset & homeless floating people ii) Aimless & ignorant iii) Untouched with any development venture & vi) Fooding & clothing mainly dependent on others 2. Hard Core Poor: i) Below 3 decimals of land ii) Sale physical labor having no other means of income iii) No savings iv) Unable to have meals three times in a day v) Unable to purchase minimum clothing vi) Unable to spend money on education, non-food item vii) Very weak asset-base / asset-less & viii) Earning is less than one US$ per day per household and food intake less than 1400 k.cal. per head per day. 3. Poor: i) At best 50 decimals of land in households. ii) Who is owner of below Tk. 25,000/- equivalent amount to US $ 441 iii) Food intake is less than 1800 k.cal. per head per day iv) Earning is about US $ 1 per day per household per earner v) Less capable to spend on non-food stuff affairs by own earning. vi) Willing to invest for education and non-food accessories. vii) Willing to join in development initiatives viii) Cooperative & kind minded 4. Progressive Members: Those who have been associated with development process for a considerable time and have improved their lot/crossed the poverty line through the Micro-credit Program and potential enterprises. These graduated members can create working scope for the Hard Core Poor.

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Present Portfolio of Credit Programs:

Sl. Item No. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. No. of Groups No. of Branches No. of Total Staff No. of Field Workers Total Members Achievement in the Cumulative reporting year Achievement 1,147 08 44 24 112,294 13,704 174 1607 1006 6,88,051 45,39,40,884 672,95,34,550 581,49,27,000 91,46,07,550 1,21,28,494 99.99

Total Savings 8,95,69,800 Amount (in Tk.) Total Loan Disbursed 167,73,59,900 (Tk.) Total Loan Recovery 148,47,19,403 (Tk.) Total Outstanding Loan Amount (Tk.) Total Overdue 1,35,905 Amount (Tk.) Loan Recovery Rate -

Categories of Micro Credit:

On the basis of the sources of funding, the financial support programs of TMSS are divided into three categories. These are as follows1. Palli Karma Sahayak Foundation (PKSF) Supported Credit Program, 2. Own Funded Credit Program, 3. Project Supported Credit Program. 1. PKSF Supported Credit Program: As a very worthy financial organization, PKSF is supportive to develop Partner Organizations (POs) capacity as well as the organizational strength. To run TMSS different financial programs, PKSF has been giving various assistance since 1991.

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Beside the financial assistance, PKSF plays a vital role in order to develop image of TMSS. The status of the loan from PKSF is shown below: 29,43,00,00 0 19,48,43,60 0 -

Fund received from PKSF (Tk.) Fund Refunded to PKSF (Tk.) PKSF fund outstanding (Tk.)

142,33,66,345 95,36,00,945 46,97,65,400 9,19,14,920

Service charge paid to PKSF 1,76,56,664 (Tk.)

2. Own Funded (Non PKSF) Credit Program: Beside PKSF credit, TMSS, provides financial support with its own fund to the rural poor. According to the organizational philosophy & policy, the demanding areas is covered by this fund. Cumulative disbursement under this program is Tk. 15,66,59,000/-. 3. Project Supported Credit Program: With the help of the development partners (other than PKSF), the microcredit program is conducted as a component of social development programs for the TMSS members assistance. This type of loan is known as project loan. Cumulative disbursement under the project loan is Tk. 2,98,27,000/-. TMSS has been implementing this Project Supported loan with the assistance of Sonali bank, World Fish center-USAID, ILO, ICCO, OXFAM, DAE, Fourth fishery and other Development Partners.

Sources of Fund:
The major sources of fund for TMSS are the following; 1) External Donors grants 2) Internal savings of members 3) Sponsors Equity and others (including interest and other charges) 4) Loans from national agencies via some international council or assembly of national representatives.

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Ratio for Micro Finance:

Sl.No. 01. Description Financial Sustainability: i) Return on Performing Assets 27% (RPA) ii) Financial cost ratio iii) Operating cost ratio 3.35% 11% Ratio

iv) Operating Self Sufficiency 157% ratio (OSS) v) Financial Self Sufficiency ratio 130% (FSS) vi) Return on capital ratio vii) Loan-loss Provision ratio 02. Operating Efficiency Ratio: I) Cost per unit of money lent ii) Cost per borrower iii) Members per field workers 7.32% Tk. 405.50/262 28% 2.26%

iv) Loan outstanding per Field Tk. 909153 worker v) Member Borrower ratio 03. Port-folio quality ratio: I) Cumulative Recovery Rate 99.98% (CRR) ii) On Time Realization Rate 99.99% (OTR) iii) Port Folio at risk iv) Delinquency ratio v) Reserve ratio 1.78% 1.69% 2.65% 262 : 194

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vi) Savings and loan outstanding 50% ratio

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Saving Program:
TMSS operates saving activities (accumulation of tiny amount of money from individual client) in order to mitigate Group members crisis situation and promote their livelihood through door-step service. They are encouraged to save money on regular basis to develop their own capital that helps them to accumulate capital by time. Every member has passbook and they get their interest as per bank rate.

Classification of Savings Programs:

Classification of Savings programs are the followings; 1. Regular Savings Program A. General Savings: General savings collected from the group members on regular or weekly basis. Saving program helps the poor to save money easily and effectively. Up to June 2004, Tk. 84,87,35,349/- has been deposited and present balance is TK.37,49,43,103/. B. Flexible Savings: To make the hard-core poor saving-oriented and create their capital, TMSS operates Flexible Saving facility among them. The members save Tk. 2.00 10.00 (not any fixed amount) on regular basis. 2. Voluntary Savings Program

A. Special Savings: The Group members accumulate this savings and can withdraw this at any time as per their need. Up to June 2004, Tk. 23,95,55,199/- has been deposited and present balance is Tk. 5,89,42,081/-. B. TMSS Savings Scheme: The beneficiaries save their money in TMSS saving scheme for a particular period and it is returned while desired or according to savings rule of TMSS. Up to June 2004 Tk. 4,14,71,195/- has been deposited and present balance is TK.2,00,55,700/-. Savings Accumulation by Group Members 75% 21% 4% General Savings S. Savings TSS

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Members Benevolent Fund (Insurance): All the beneficiaries of TMSS are involved in this program and contributing regularly to this fund for mitigating future crisis. If any member or guardian of the beneficiaries claims, this financial service is provided them. In such case, rest of the loan and service charge are paid from this fund through the decision of the Para Group (PG). Grant Allocation : In case of the small worthy initiatives (NGOs) those who are the networking members / CEFE club members / registered cooperatives shomitee are allocated Grant money from TMSS. Award Giving: TMSS awards groups, local initiators, social people, scholars, and innovative initiators for their extra-ordinary performance considering successful implementation of the programs. NGO Financing: TMSS enhances networking of the local NGOs to facilitate and coordinate work of NGOs for its smooth operation at the interest of development. TMSS provides with financial supports to the networking NGOs for their capacitybuilding and facilitating development activities. A total number of 27 NGOs have been financed up to June 2004. Now this has been closed.

Loan Distribution Procedure:

Only female members can get loan from the NGO and some people from same area forms a group to get the credit facility. If the peoples wish they can work together or may work alone with the credited amount, TMSS provides necessary information and help to their members to effectively use the money. Members can get loan in terms of their agreement, which differs from person to person depending on the amount of loan willing to take.

Loan Collection Procedure:

The collection is conducted on daily, weekly, monthly or contract basis. The work begins at 8.00 in the morning; the field workers leave the office for collecting money from credit holders. Every worker is assigned to a certain area with a record book for each day collection. The credit holders

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form a group and meet together in a specific time and area with their receipts. All members join together and pay the due to the collector, and then the payments are recorded in the daily journal book for further calculation.

Program Management, Coordination and Evaluation:

TMSS follows some set of activities and principles to effectively and efficiently conduct their existing programs and also plans for the future as well. The techniques for program management, co-ordination and evaluation are as follows; 1. For efficient and successful implementation of the project, energy, efficient and qualified personnel will be appointed. After proper orientation they will be deployed to the working areas with specific assignment. 2. As planning is the most important step for successful implementation of any project, proper work plan for implementation of the project will be checked out very carefully. 3. To address Education, Health and social awareness meetings with the local leaders, religious leaders, GO, NGO-bodies, other voice-full stakeholders will be organized. 4. The problems are mainly dependent on social awareness. Hence awareness building campaign in the general public cohort will be carried out through meetings, audio-visual shows, workshop, seminars and disseminating different effective messages through banners, posters, festoons, stickers and multimedia in the society. 5. For successful implementation of the project, capacity of the local NGO will be strengthened through partnership development and message dissemination. 6. As per desire of the concerned authority inception report, monthly report and final completion report will be prepared and dispatched in time.

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Findings:
Women have become the focus of many micro credit institutions and agencies worldwide. The reasoning behind this is the observation that loans to women tend to more often benefit the whole family than loans to men do. It has also been observed that giving women the control and the responsibility of small loans raises their socio-economic status, which is seen as a positive change to many of the current relationships of gender and class. A Savings Investment as Preferable Aid: Independent borrowers earn the dignity and lasting self-confidence associated with responsible loan repayment. Institutional managers are more careful to ensure borrower success and generally perform better when there are risks involved. Entrepreneurial Talent and Energy are Scarce Invaluable Resources for Economic Growth: Our economies cannot afford not to find and develop independently responsible entrepreneurs and public bankers who are financial critical thinkers. These individuals can be attracted to the micro credit industry, but they are individuals with options they will not risk their future on short-term or unpredictable bureaucratic support. Traditional Private Banks should not be expected to Offer Micro Credit: Existing banks with a traditional operating philosophy typically have significant investments in facilities and costly operating structures. Because of the significant overhead of such banking operations, these bank operations naturally gravitate to large, profitable transactions with affluent borrowers. A new generation of banking institutions [and the banking professionals to run them] is arising: Banking institutions motivated by a less myopic vision of profitably serving the common good can be capitalized for the primary purpose of entry-level economic development. By lowering the transaction costs through institutional specialization and innovation in delivery systems, they will be able to operate profitably in markets characterized by very small transaction sizes and less affluent clients.

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Poor entrepreneurs possess the same survival skills as the toughest, most affluent business operators: Poor entrepreneurs save money, carefully apply their entrepreneurial energy and repay debts as scheduled to maintain access to future loans. In other words, poor entrepreneurs are not only prebankable, they represent the population of those individuals who will be aggressively pursued as successful, very affluent captains of enterprise in 10, 25 or 50 years from now. A radically efficient, large-scale, NEW banking operating infrastructure required: Simply modifying old methods will not successfully expand poor people's participation in their country's economy. Investment in self sustaining institutions that finance poor residents is a comparatively cost-effective use of scarce subsidies for economic development. The costs of doing research in the microcredit and microenterprise areas are extremely low compared to other strategies to stimulate economic development such as tax abatement or continued support for welfare programs. Beyond enterprise lending and savings: Increasingly, microfinance is expanding beyond its roots in savings and business lending and now offers other forms of financial services, including most notably insurance and housing microfinance. In many ways, microfinance offers the promise that it could eventually evolve into a specialized form of banking catering to economically active poor people who currently happen to be unbanked. Some new microfinance focused-organizations, see for instance the Development Innovations Group (DIG), have embraced this more expanded vision of microfinance and speak of financial services for the poor or of development finance, rather than of microfinance.
Figure 1

Economic Impacts of Microfinance :

36 (a) Income The 1998 survey found the average annual income of participant households to be higher than that of the non-participants. Self-employment activities had more than 50% contribution to total income for the participants as against 43 percent in case of non-participants. The second BIDS survey suggests that nominal household income increased by 19 percent in program villages and by only 13.5 percent in control villages. Compared to non-participants the participant households were better able to cope with flood, sustain their income, achieve higher purchasing power and consumption level (b) Food Security The BIDS study finds the program participants, due to greater access to sharecropping, had better food security and about 26 percent of rice consumption out of own production (after sale), which was also marginally higher than the nonparticipants. (c) Wage Wage earning contributed about 23 percent of total annual income for the land-poor households. Microcredit helped participant households to earn about 8 percent higher income than that of the non-participants. (d) Employment The participant households are better able to ensure more employment on own farms due to their better access to the land rental market. Wage and self-employment in nonagricultural sector is also higher for the participant households due to their access to microcredit program (e) Assets : land and non-land Average size of land owned by participant households is lower than the nonparticipants; 91 decimals compared to 149 decimals. The BIDS study however suggests that the eligible participants mortgage or rent-in more land than the nonparticipants, and therefore, have larger operational holding. Higher percentage of program participants own poultry, goat/sheep and cows compared to non-participants. A higher percentage of the participants own bicycles (12.5% compared to 8%), boat (3.7% compared to 1.6%), irrigation equipment (1.23% compared to 0.23%), radio (17.9% compared to 12.6%) and rickshaw/van (8% compared to 2%) thus showing higher asset ownership of the participants. 9.1.2 Social and Other Development Impacts (a) Health and Nutrition There is positive program placement effect on nutrition status. (b) Sanitation and Drinking Water The BIDS study finds small positive influence of participation on waste disposal and use of sanitary toilets among the land-poor households with no clear evidence of program impact on hand-washing. The use of pure drinking water from hand tublewell was found universal.

37 (c) Literacy and School Enrollment of Children Adult literacy rate is significantly higher among the eligible participants. The BIDS study also found that program participation increases the chance of both boys and girls to be enrolled in schools. (d) Empowering Women Microcredit programs' main target is women. There are strong evidences that, microcredit programs contribute to women's empowerment. One consistent finding is the increased self-confidence and increased self-esteem. Another is women's increased in decision making in the areas of family planning, children's marriage, buying and selling of properties and sending daughters to school. There have been some evidences that members of microfinance institutions are able to stop domestic violence due to personal empowerment and through group action. In Bangladesh, microcredit programs have also increased women's participation in the activities of local government. Some women microcredit clients have been elected as Chairpersons and Members of various Union Parishads, the lowest and most vibrant tier of local government. Now women microcredit clients take greater roles in community activities and organizing for social change.

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Recommendation:
The credit management system of TMSS is well balanced and they operate their programs very carefully. Since the recovery rate of credit program is nearly 99%, so we can easily say that this organization is running well with their vision. But often the prospective beneficiaries are not willing to be associated with the MFI and usually it takes time to build confidence among them. The following are found to be the rationale behind such skepticism; 1. Those who are not aware of the activities of MFIs, find it hard to believe that they will really be provided with collateral-free loan. This observed mainly in remote areas, where micro credit is still not popular. 2.Many prospective beneficiaries are aware of cheating by some of such organizations, which happened in many areas. 3. Some people consider the activities of MFIs to be difficult to understand. 4.Often the amount of loan is considered to be inadequate. To overcome the opposing factors, the following steps can be followed by the NGO; 1. Local people are recruited in different positions. 2. Frequent monitoring of the groups increases confidence of the group members. 3. Often relatives and friends of the employees and local union parishad members help in social confidence building. 4. Personal contacts were made with some local elite to motivate them to favor the activities of the organization. Conclusion:

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Executive Summary
TMSS is one of the fast growing NGO in Bangladesh. It has been started its journey with the slogan of Women empowerment in the society. It is strongly belief that without contribution of women a country can not be developed. This is why they are designed various type of loan scheme for the helpless women in the society. It has already established its activities almost 62 district in the Bangladesh. So that all kind of can be come into its shelter. But to materialize their vision, TMSS need to address its client perfectly. Because clients are the heart of their organization. Now-a-days there are lot of NGOs are working in Bangladesh and the competition is being increased among them. For this reason, it is crying need to formulate some strategy that will help it to acquire new clients as well as to exist old clients. Client relationship management is a business strategy that uses information technology to provide the organization with a comprehensive, reliable and integrated view of its client base so that all business process and clients interactions help maintain and expand mutually beneficial relationship. CRM systems help TMSS to improve the profitability of their interaction with current and potential clients while at the same time making interactions safer and friendlier through individualization and personalization. The system goals are to enhance clients service, improve clients satisfaction and ensure client retention. In this report I am trying to highlight what kind of client relationship strategies are TMSS following. I observed that TMSS has taken some steps to acquire new client as well as to maintain existing clients. But still it has not been able to formulate any strategy for the lost client. It is very urgent because to cultivate lost client incurs relatively low than that of create new client.

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In fine we can say that if TMSS wants to survive and keep their performance best among the NGOs it has to be concerned about the CRM system.