HEED Microfinance - demonstration of solar panel system on Bhola Island - Bangladesh

Background of Micro Finance Program of HEED Micro Finance Activities is one of the most powerful systems to address global poverty, and it does so in a way that builds self-esteem in the individual and self-sufficiency in the institution providing the financial services. It works in cooperation with other development interventions such as those that promote health, nutrition, democracy, and education and it offers a hand up, not a hand out. Micro Finance Activities is a financial system capable of producing a quadruple bottom line. When executed effectively, it can relieve suffering, bring dignity, become sustainable and inspire supporters. The initiative was taken in Kamalgonj in 1978 and reviewed in 1990 with full commitment and zeal. Now we are one of the top frontline Micro inance implementers in Bangladesh. At the initial stage members would save and deposit their money in the bank in their own accounts. Sometimes members would take loans from their savings. It was actually a "People Managed Credit Program." This credit system did not work well so to bring discipline and good management into the Micro Credit Sector, HEED decided to collect the savings from the members and provide them with loan according to their needs. During this stage, HEED entered into full credit culture and implemented a full fledged credit policy, administrative policy, financial policy. Recruited specialized staff members for operating the Micro Credit Program and was given a separate structural and management identity. HEED has changed its strategy to operate Micro Finance Program in a sustainable way without any support from donors for operational support. The strategy was to build Loan Capital Fund from their own internal source and loan funds from national sources like Palli Karma Sahayak Foundation (PKSF) & Bangladesh Bank.