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United Nations Development Programme (UNDP) is planning to introduce Credit Union (CU), which will help them to strengthen and extend their existing entrepreneurs as well as establish Small and Medium Enterprises (SMEs), reports BSS.
CU, as one of the easy and available sources of finance for women entrepreneurs, will be an association that is a non-profit and non-banking financial institution, owned and operated by its members.
The union will be a safe and sound institution to save and borrow money at the reasonable and affordable rates.
CU will be formed by the Jatiya Mohila Sangstha (JMS) under its 'Entrepreneurship Development of Women (EDW)' project funded by the UNDP.
UNDP International Policy Dialogue Specialist Alimdjanova Dinara told the news agency that the EDW had already facilitated a total of 5000 women entrepreneurs from 64 districts, who have already received various types of entrepreneur development training.
Among 5000 entrepreneurs, 1802 have received micro credit totalling an amount of Tk 58.2 million (5.82 crore) but unfortunately since April 2001 credit support to the project beneficiaries has been stopped due to UN global policy, she said.
"We identified a number of constraints related to entrepreneurship development for women and lack of finance has been identified as a priority," Dinara observed.
The scenario of women and finance in Bangladesh is that women suffer from lack of resources or capital mostly due to unequal inheritance. For bank loans, women need to give collateral except in very few cases of projects catering to small needs.
Collateral free loan access also require guarantee from male members of the family and women, who are divorced, abandoned or do not have males in the family have limited access to loans.
National Consultant of the Project Moushumi Quader told the news agency that at the beginning "we would form a central CU titled 'Association of Bangladesh Rural and Urban Women Entrepreneurs (ABRUWE)' and six CU in all divisions will be formed as pilot basis."
She said that CU would help women to strengthen capacity of their business and to move to the upper stage of business activities, which will open them the doors of the banks in Bangladesh.
Government authority will register CU and as a result CU would be able to get fund from government and donors partners for ensuring flow of finance to extend entrepreneurs.
"CU will be democratic in action as it will be managed by a volunteer board selected by members and the policy and regulations will be adopted by equal members and very friendly environment", Moushumi said.
Not only JMS entrepreneurs but also any small or medium women entrepreneurs and women organisations or associations will be eligible for joining or form credit union all over the country.
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