Introduction

Padakhep launched its microfinance program in 1993 to encourage the increase of income and livelihood of the poor beneficiaries. Based on long term experience, Padakhep realize that, Microcredit is insufficient to tackle poverty and that the poor also need a package of other services for their economic empowerment, resulting in microfinance. While microfinance has produced benefits, it is not enough as it has failed to reach the poorest of the poor. Considering the problem, Padakhep follows a Holistic Development Approach (HDA) in operating its microfinance program aims to alleviate poverty not only through income generation but through a holistic approach targeting a package of other interventions centering a community or Padakhep Palli. Holistic Development is the system of collectively implementing health, economic, and education initiatives to strategically meet a community's development goals.

Microfinance has been regarded as the main program of Padakhep in respect of beneficiary size, working area, volume of capital and belongingness. All other programs/activities strategically are based or centered on microfinance. Efficient management system and tools, linkage with financial institutions, identification of alternative micro-schemes, approach to address the poorest of the poor section and access to the remotest and hard-to-reach locations have added an extra dimension to Padakhep's microfinance program. It has to be mentioned that a beneficiary of the microfinance program of Padakhep was awarded 'Best Woman Micro Entrepreneur of the Year 2013' from CITI Group.

Padakhep receives credit funds and operational backstop support from PKSF and other national as well as international financing agencies. The program covers target beneficiaries like ultra poor, beggars, poor, small/marginal farmers, businessmen, fishermen, entrepreneurs, char/haor/baor/tribal/coastal and monga-affected people, etc. In all, 30-35 lakh beneficiaries are involved in the microfinance program of Padakhep.

Objectives of the program

The specific objectives of the microfinance program are to:

• Make credit available to the poor helpless people who do not have access to the existing (formal) credit facilities
• Help create self-employment and sustainable income for the target people through Income Generating Activities (IGA) and enterprises
• Mobilize savings for the poor
• Reduce dependency on moneylenders
• Enhance income of the organization for its sustainability
• Empower the women
• Ensure livelihood security of the beneficiaries

Program Strategy

Padakhep follows Holistic Development Approach with microfinance as the centre point of development. The important strategies of the program include:

• Maintaining MRA rules & regulations
• Diversified products to meet beneficiaries demand
• Special emphasis on sustainability of its borrowers.
• Easy & close communication among employee as well as between employees & beneficiaries
• Dynamic & forward looking leadership
• Decentralization and delegation of authority to the bottom line officials
• Participatory process in decision making
• Special provision and emphasis on micro enterprise loan to advanced members for creating employment opportunities
• Implementing cluster-based development activities through mobilizing all sorts of local level resources and providing need-based information and      technologies to the beneficiaries and communities
• Ensuring maximization of savings and promoting micro insurance as the part of borrower's resource mobilization and safety of the disbursed      credit.
• Special priority on the agricultural development projects.
• Strong monitoring and supportive supervision
• Establishing and maintaining linkages and partnership with the govt./NGO/private organizations and national/international donor agencies
• Special focus on women's empowerment
• Risk and transaction cost reduction

Operational Area

At present, Padakhep is operating its microfinance program in 54 districts through 312 management units (246 branch, 5 sub-branch, 48 area, 13 zone offices and head office).