RDRS Bangladesh started its microfinance (MF) program in 1991 to create employment opportunities and provide income-generating support to poor and disadvantaged people. The program puts particular emphasis on women and the minority segment of the society. Initially, the program started in eight districts under Rangpur Division; now gradually covered 29 districts. RDRS Microfinance strives to make financial and other related services (savings, credit, insurance, skill development training etc.) accessible to the poor and disadvantaged with a view to increase their income and employment opportunities for them with special emphasis on women, physically disabled and minorities.

• Create opportunities in employment and entrepreneurship in formal and informal sectors for RDRS’s MF clients by enabling access to appropriate and diverse financial products and services.

1. Income generation for microfinance clients (particularly women and marginalized groups) through access to financial services, and enterprise promotion.
2. Enhance competency for microfinance clients in the management of income and savings at the individual, household, and enterprise levels.
3. Introduce Client Centric diversified financial products for RDRS MF clients and contribute to increased financial sustainability.

RDRS Microfinance Program works on the following 7 priority areas to achieve its goals and objectives:

1. Ensured access to financial services.

2. Development of Enterprise (Micro and Small).

3. Human Resource Development.

4. Innovative Product Development.

5. Digitization of Microfinance Program.

6. Enabling Corporate Social Responsibility (CSR).

7. Fund Mobilization.

 As of June 2024, the microfinance program has expanded its coverage to 141 sub-districts (Upazila) in 29 districts across the country. RDRS offers microfinance services through 288 branch offices mostly located in rural and semi-rural areas, some of them are urban areas.

RDRS offers client-friendly diversified financial products and services, i.e. micro-loans, microentrepreneur’s loans, agricultural loans, water and sanitation loan, diversified savings like – General Savings, Voluntary Savings, Monthly Savings deposit scheme (MSDS), Double Benefit Savings Deposits (DBSS), Monthly Profit Saving Scheme (MPSS) and access to member loan security fund to cover the risk of the borrowers. Financial products are developed to meet the needs of various customers and to assist them to enjoy better living conditions. The operational methods are very easy, and quick and minimum documentation is required.

Principally, loan products are designed in main two categories based on loan size and rate of interest.

1. Micro Loan: The loan is intended for rural and urban poor households to finance their economic and non-economic activities. The microloan aimed to build a strong capital base. This loan is called ‘Udayan loan’ the loan ceiling varies from BDT 10,000 and gradually increased maximum 1,000,000. Women are given priority for this microloan. Agriculture loan is also disbursed under microloan. The rate of interest also varies on loan size from 22% to 24%.

2. Micro Entrepreneur loan: The micro-entrepreneur (ME) loan is mainly a graduated micro loan and is considered an individual loan. This micro-entrepreneur loan is called ‘Unnati Loan’. ME loans significantly contribute to creating self-employment and wage employment opportunities. Furthermore, the inclusion of missing middle borrowers into financial inclusion has become of utmost importance. RDRS ME loan ranges from BDT 101,000 and gradually increased maximum 3,000,000. Youths and women entrepreneurs are priorities for this loan. The rate of interest also varies on loan size from 20% to 24%.

3. Agriculture loan: From the inception of the microfinance program, RDRS has given special attention to the agriculture sector in the northern part of Bangladesh, i.e. Rangpur division. RDRS is implementing many agriculture projects in collaboration with PKSF, such as Shufolon, LIFT, KGF etc. to support the agriculture credit. Besides, in collaboration with commercial banks agriculture loan is also provided to the farmers. Technical support is also provided to the farmers. Bangladesh Bank also finances to RDRS agriculture credit and conducts field-level monitoring. RDRS is implementing a project titled ‘Small and Marginal Sized Farmers Agricultural Productivity Improvement and Diversification Financing Project (SMAP)’ with the supported by Bangladesh Bank. Out of total loan, around 65% loans are disbursed on agriculture sector.

4. Non-IGA Credit: Considering the social impact and health and well-being of the clients, RDRS is being implemented some non-IGA credit project such as- Water Credit (Supported by Water.org), BD Rural Wash, Sanitation Development, Asset Creation, Livelihood Increasing (Supported by PKSF)

RDRS offers four types of savings products – General Savings, Voluntary Savings, Monthly Savings Deposit Scheme (MSDS) and Double Benefit Savings Scheme (DBSS) and Monthly Profit Saving Scheme (MPSS).

1. General Savings: Microfinance clients have to save a minimum of 200 Taka to 500 taka per month. They will enjoy a return of 6% interest per annum against their savings.

2. Voluntary Savings: Through voluntary savings, members can save any amount of money after depositing compulsory savings. They will enjoy a return of 6% per annum against their savings.

3. Monthly Savings Deposit Scheme (MSDS): A Monthly Savings Deposit Scheme (MSDS) is a product where Members can invest monthly starting from BDT 100 to BDT 10,000 for tenure of 3 years or 5 years with 7 percent and 7.5 percent interest rates respectively.

4. Double Benefit Savings Scheme (DBSS): This is a fixed-term deposit product where members can invest a bulk amount of money with a specific plan. The plans start with a minimum investment of Tk 20,000 and a maximum of Tk 1,000,000.

5. Monthly Profit Saving Scheme (MPSS): Under Monthly Profit Savings Scheme (MPSS), Members get monthly profit based on deposited amount. Members can deposit from BDT 25,000 to BDT 1,000,000 individual and BDT 2,000,000 for family. Member get monthly profit BDT 925 per 100,000 BDT. The profit rate is 11.10%.

Under the Credit Shield Insurance service, due to the death of the borrower or the borrower's nominee, the family of the deceased is provided with fixed insurance benefits. For example:

• Cash Payment for funeral- In case of death of borrower or borrower's nominee, a cash payment of BDT 15,000 is given to the borrower's family for funeral purpose.
• Loan Waive- Remaining loan is waived till the time of death of borrower or borrower's nominee.
• Return of Savings- The accumulated savings of the borrower till the time of death are returned with profit.

Borrower pays premium at the rate of 0.6% of the loan taken to avail the above benefits.

Microfinance institutions evolved in Bangladesh for close to four decades and have impacted the lives of millions of poor people but digitization was not a priority in this sector until the last two decades. Due to the RDRS microfinance priority to maintain a huge database of clients and to track the progress MF software started digitalisation. Subsequently, a lot of technological innovation took place like digital financial services (Mobile money), Mobile apps for field operation, AI-based software to assess creditworthiness and propensity to repay the loan. RDRS is at the forefront of the digitalization of microfinance programs.

The Revolving Loan Fund (RLF) is one of the most important elements of the microfinance operation. RDRS RLF consists of different sources of long and short-term loans and RDRS equity. A glimpse of RDRS RLF is given below: (as of June 2024)

RDRS believes that knowledgeable, skilled, and motivated human resources with positive attitudes are valuable resources for the success of any program. During the year 2023-2024, the microfinance program provided in house training to 1207 staff under 50 batches.

The training topics are Foundation Training on Microfinance/Microenterprise Management, Foundation training on Accounts & Financial Management Management, Training on Leadership, Management & Administration Skills Development , Training on Loan Process, Legal Documents, Communication Skill & Customer Service Accounts and financial management, Trining on Group Dynamics, Communication Skills & Microfinance Management etc. RDRS also sent staff to attend training outside the organization such as PKSF, CDF  at dirrent type of microfinance related topics for capasity building of these staff.

RDRS scholarship program is ongoing to provide educational assistance to poor and meritorious students. Under this self-financed program, scholarships of BDT 4000 per month in the higher education scholarship category and BDT 3000 per month in the diploma course category are provided every three months. In the financial year 2023-24 a total of 24 students have been provided scholarships of BDT 834,000. Out of this, 15 students get BDT 600,000 in higher education scholarship and 9 students get BDT 234,000 in diploma course education scholarship.

Senior officials of Palli Karma-Sahayak Foundation (PkSF) visited Bangladesh Rural WASH for Human Capital Development Project (BD Rural WASH for HCD Project) and attended at workshop.

On 27-9-2023, a workshop on BCC campaign and project implementation strategy was held at Begum Rokeya Auditorium, RDRS Rangpur Office. Dr. Md. Jashim Uddin, Additional Managing Director, (PKSF) was the chief guest and Md. Humayun Kabir, Deputy General Manager (PKSF) spoke as special guests in the workshop where Mr. Tapan Kumar Karmakar, Executive Director, RDRS Bangladesh was a chair . Besides Mr. GM Humayun Azam, Deputy Manager PKSF and Asfak Mahmud, Deputy Manager PKSF, Robin Chandra Mandal, Program Head (Microfinance), RDRS Bangladesh and other concerned officers gave speeches. The speakers presented the project introduction, aims and objectives, BCC campaign and its main activities

 A delegation of the World Bank's Environment and Social Standards and Citizen Engagement Mission visited Rangpur on 21  May 2024 to see the progress of the Recovery and Advancement of Informal Sector Employment (RAISE) project. The inspection team included Anika Rahman (Senior Social Protection Economist and RAISE Project Task Team Leader), Kirti Nishan Chakma (Senior Social Development Specialist), Leena Kespanein (Social Development Specialist), Silvana Hill (Social Development Analyst), Nusheen Sobhan (Operations Consultant Social Protection and Jobs) and Masud Rana (Operations Consultant) and PKSF sub-project collector (RAISE) Md Golam Jilani and other officials of PKSF. Besides, Director (Microfinance) of RDRS Bangladesh, Tariq Syed Harun and Program Head (Microfinance) Rabin Chandra Mondal. On this day, wokshop was held at Begum Rokeya Auditorium at RDRS Rangpur Office.

 Rikta's father's house is in Karna Nandanpur village of Hajipur union of Pirganj upazila of Thakurgaon district. Rikta is three sisters, so she has to struggle many times while running the family in the absence of her father. Since there are more people in the family, at a young age (15 years), Rikta's parents had to marry her before she finished her academic class 3rd. She had to marry Jalal Uddin, an unemployed boy of Singarol village of Hajipur union, and go to her husband's house. In the father-in-law's house, there were a total of nine family members. After two years of marriage, a son came to Rikta's lap. Thus Rikta Begum became the mother of her two sons one by one. 4 members of the family started eating and drinking in one house, as her husband had no way of earning, the father-in-law separated them due to the large number of people in his family. Rikta's time of suffering should not pass. But Rikta didn't give up despite all the hardships, she was a very intelligent and hardworking woman. Her husband helps people in buying and selling cows but their family does not run properly. Due to the poverty of the family, Rikta thought of doing something herself in addition to her husband's income.

Rikta Begum then plans to raise poultry and grow vegetables in her homestead and learns that the RDRS Bangladesh organization in her village works with backward and marginalized people and provides them with low-interest loans as well as technical assistance. Then Rikta interacted with the RDRS field officer and at one time became a member of the Singarol Mahila Dal of RDRS Bangladesh. Rikta Begum received a loan of BDT 80,000 from the said group in 2023 and provided technical services on cow rearing. After receiving the training, Rikta Begum purchased 2 pregnant cows with the loan money. Cows give birth to two calves within a few days of purchase. Technical support services for cow husbandry are taken up. A regular member of Rikta Begum's team collects installments and savings on time and attends regular meetings. Apart from meeting the family's nutritional needs by milking the cow, the remaining milk is sold in the market to support the education expenses of the boys and Rikta Begum mortgages 25 decimal of the land with the extra money. As a result, Rikta Begum started dreaming of her family's prosperity. 180,000 at current market potential price of his two cows. One of her cow's calves was affected with Lumpy Skin Disease, Rikta Begum contacted the technical officer of RDRS, took 100% of the advice and awareness of the technical support services and followed them regularly, as a result of which her calf got Lumpy Skin Disease quickly. is better than Many women of the village have also benefited from hearing his success story. Rikta Begum in the light of the said experience is now always providing suggestions to the people of the village.

Currently, Rikta's dream is to educate her two sons in the society and establish herself as a successful and model farmer and to make the cow farm bigger and known as an institution so that employment opportunities are created for the people of the area.

The Bangladesh Rural WASH for Human Capital Development Project (BD Rural WASH for HCD Project) is an initiative dedicated to enhancing the environmental and social conditions in selected rural areas of Bangladesh. The project's primary goal is to improve the quality of life for these communities by strengthening water supply and sanitation systems. This initiative aligns with Sustainable Development Goal (SDG) 6, which aims to ensure the availability and sustainable management of water and sanitation for all. By focusing on increasing access to safely managed water and sanitation services and building institutional capacity within the sector, the project aims to create sustainable improvements that will benefit rural households, particularly women and children who are most vulnerable to the effects of inadequate water and sanitation.

The objectives of the BD Rural WASH for HCD Project are twofold. Firstly, the project seeks to improve access to safely managed water supply and sanitation services in selected areas. This objective addresses a fundamental need for clean water and proper sanitation, which are essential for preventing waterborne diseases and improving overall health outcomes in rural communities. Secondly, the project aims to strengthen the institutional capacity of local organizations involved in the water and sanitation sector. By enhancing these institutions' ability to manage and maintain water and sanitation systems, the project ensures the long-term sustainability of its interventions, helping to build a resilient community infrastructure.

The project targets household members, with a particular emphasis on women and children, recognizing that these groups are often disproportionately affected by poor water and sanitation conditions. The initiative is being implemented across seven districts in Bangladesh: Kurigram, Nilphamari, Hobigong, Moulavibazar, Gaibandha, Sherpur, and Lamonirhat. These districts have been chosen based on their high need for improved water and sanitation services, as well as their potential for impact through targeted interventions.

A range of activities is being implemented to achieve the project’s goals. One key strategy involves providing loans to households to improve their water facilities, allowing them to access safer and more reliable water sources. In parallel, loans are offered to local entrepreneurs to develop the water supply market, fostering local economic growth and improving water infrastructure. Similar financial support is provided to households to enhance their sanitation and hygiene facilities, directly contributing to better health outcomes by reducing the prevalence of waterborne diseases.

To further develop the sanitation and hygiene sector, the project offers loans to local entrepreneurs for market development, ensuring a steady supply of necessary products and services. A unique aspect of the project is its support for women entrepreneurs, providing them with loans to promote and sell sanitary napkins. This initiative not only addresses menstrual hygiene management but also empowers women economically, promoting gender equality within these communities.

In addition to financial support, the project emphasizes behavior change through a comprehensive Behavior Change Communication (BCC) campaign. This campaign is designed to educate beneficiaries about proper hygiene practices, encouraging a culture of health and cleanliness. By delivering targeted hygiene messages, the project aims to instill long-lasting behavioral changes that will improve public health in these rural areas.

The BD Rural WASH for HCD Project is directly contributing to the achievement of SDG 6 by ensuring the availability and sustainable management of water and sanitation for all. Through its comprehensive approach, the project addresses critical gaps in water supply and sanitation services, while also promoting local economic development and community empowerment. By focusing on sustainable solutions and community involvement, the project is laying the foundation for long-term improvements in health and quality of life for the people in the targeted districts.

Bangladesh Rural WASH for Human Capital Development Project represents a significant effort to address the pressing need for improved water and sanitation in rural Bangladesh. By combining financial support, capacity building, and behavior change strategies, the project not only enhances access to essential services but also strengthens community resilience and fosters sustainable development. The initiative’s focus on women and children further underscores its commitment to creating equitable and inclusive growth, making a meaningful impact on the lives of those most in need.

RDRS Bangladesh is implementing the Poverty Alleviation through Family-based Integrated Activities Implementation project in Char Rajibpur in Rajibpur upazila of Kurigram district. The project is being implemented with the support of Palli-Karma Sahayok Foundation (PKSF). The project is working with 12,000 households in the project area. The group members of RDRS microfinance programme will be benefitted from this project. The project is designed in line with SDG – 1, 3, 4, 5, 6, 8, and 13 (No Poverty; Good Health and Well-Being; Quality Education; Gender Equality; Clean Water and Sanitation; Decent Work and Economic Growth; and Climate Action).

Char Rajibpur has the highest poverty rate 79.08%, with vulnerability in many areas like socio-economic condition, employment, education, health & nutrition, and communication than any other upazilas in Kurigram district. Natural disasters such as flood, cyclone, drought, river erosion are regular phenomena of this upazila. Considering the vulnerability of the area, RDRS has initiated this poverty alleviation project to increase per capita income of the poor people of Char Rajibpur.

The goal and objective of the project are sustainable poverty alleviation through the ultra-poor community to increase enabled and ensure food and nutrition; to enable adaptation and enhance economic condition improvement; and to assist ensuring of GO and NGO services. 

The major activities under the project are training, technical service and income-generating activities (Livelihoods), inclusive finance, health & nutrition, social mobilisation, disability inclusion, gender equality, climate change & disaster management, education, immigration activities.

The key highlights are enterprise development, growing vegetables in the courtyard round the year, health camp, nutrition display camp, providing assistance to children, medicine for curative care, and providing assistance to pregnant mothers.

RDRS Bangladesh is implementing the Water and Sanitation for Rural Poor of Northern Bangladesh project in Panchagarh, Thakurgaon, Dinajpur, & Nilphamari district of Rangpur division and Moulvibazar & Hobigonj district of Sylhet division. The project is being implemented with the support of Water.org. The 50,000 households are the direct and 225,000 households are the indirect programme participants of the project. The Program participants are poor household members. Most of them have no ability to install sanitary latrines, even some of them are not able to set up a tube well on their own. This project is providing loan facilities with technical support to the poor for construction of latrines.

The Water and Sanitation for Rural Poor of Northern Bangladesh project is designed in line with SDG –6 (Clean Water and Sanitation).

The goal of the project is to bring the underprivileged community people under access to safe water and sanitary latrines to ensure their good health and a healthy environment for all. The objectives of the project are

1.  To facilitate access to safe drinking water as well as improved sanitation facilities of poor and disadvantaged people;
2. To make programme participants aware of health-hygiene and waste management system; and
3. To introduce evidence-based documentation and coordination among WaSH actors for the replication of good practices.

The programme participants are receiving hygiene education and awareness along with the sanitation loans. The major activities of the project are water loan disbursement, sanitation loan disbursement, training for programme participants, group discussion etc.  

RDRS Bangladesh is implementing the Small and Marginal Sized Farmers Agricultural Productivity Improvement and Diversification Financing project in RDRS working areas covered by microfinance programme. The project is being implemented with the support of Bangladesh Bank. The microfinance borrowers are the direct programme participants of the project. The SMAP project is designed in line with SDG 2 (Zero Hunger).

The goal and objective of the SMAP project is to increase agricultural productivity and diversity of the small and marginal sized farmers (SMFs) of Bangladesh by financing agricultural loans and providing technical support services (agriculture and livestock) to farmers through Microfinance Institutions, thereby contributing to the sound development of agricultural finance and the agricultural sector of Bangladesh.

The major activities are being accomplished under the project are providing loan, technical orientation, and technical support services to the programme participants. 

The lifestyle of MF clients under the SMAP project is positively changing. They are being able to produce more quality food by using modern technologies at less production cost.   

RDRS Bangladesh is implementing Integrated Agricultural Unit project in Kurigram Sadar, Rajarhat and Khedabag of Kurigram district. The project is being implemented with the support of Palli-Karma Sahayok Foundation (PKSF). The MF group members are the target people of the project. This project is directly working with 1000 households in the project area. The Integrated Agricultural Unit project is designed in line with SDGs 1 and 14 (No Poverty, Life Below Water).

The goal and objective of the project is poverty alleviation through implementation of integrated agricultural activities.

The major activity of the project is implementing different agricultural demonstrations in the project area.

After participating in the project, the target people have gained more knowledge on smart agriculture. They are using new agricultural tools in farming that has increased their production and income.

RDRS Bangladesh is implementing the Recovery and Advancement of Informal Sector Employment (RAISE) project in Rangpur, Gaibandha, Nilphamari, Panchagarh, Thakurgaon, Dinajpur, Lalmonirhat and Kurigram districts. The project is being implemented with the support of Palli-Karma Sahayok Foundation (PKSF) and the World Bank. The target communities of the project are COVID-19 affected micro entrepreneurs and low-income youth Entrepreneurs. The project is directly working with 1590 programme participants. The RAISE project is designed in line with SDG 8 (Decent Work and Economic Growth).

The goal of the project is to provide services that can enhance earning opportunities for low-income youth in Urban and Peri-Urban areas of Bangladesh. The objectives are:

1. to provide financing to entrepreneurs affected by COVID-19 on easy terms through PKSF's affiliates to re-establish their business ventures;
2. to assist access to finance for youth entrepreneurs through Business development; and
3. Apprenticeship program (Skill training & Employment of informal sectors).

The major activities are being accomplished under the project are enrollment in apprenticeship training programme; community outreach programme; and master craftsperson orientation.