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| Credit Programs | 101 items of lending | Northwest Crop Diversification Project (NCDP) | |
The bank has introduced a special credit program titled "RAKUB- Small Entreprise Credit Program" (SECP). The project aims at promotion of entrepreneurship in agro-based small enterprises and non-farm activities in Northwest region of Bangladesh. |
Norwegian government and RAKUB has jointly provided credit fund for the project. Ministry of Finance, Government of Bangladesh monitors the project activities. |
Maximum credit limit for a single enterprise has been fixed at Taka 500 thousand (US $ 7.35 thousand approx.). Credit facility amounting up to Taka 75,000 (US $ 1100 approx.) would be collateral-free. |
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Salient features of the project
| Project cost | |
| Total Cost of Project | Tk. 599.80 m |
| Norweigian grant (Nok. 50.00 m) | Tk. 318.30 m |
| RAKUB's contribution | Tk. 281.50 m |
| Distribution of Fund: | |
| Technical Assistance | Tk. 93.20 m |
| Revolving Loan Fund | Tk. 506.60 m |
| Share of Loan Fund: | |
| Norweigian Grant | Tk. 225.10 m |
| RAKUB's share | Tk. 281.50 m |
| Objective of the project | The main objective of the project is to create employment opportunities through development of small/micro enterprises. The project would provide training, credit support and other related services. |
| Target-entrepreneurs | Entrepreneurs engaged in three types of activities namely manufacturing, trading & service providing would be considered. The project will develop or finance 100-150 small enterprises in the first year and 300-400 in the fifth year in each upazilla (administrative tier below district). |
| Area of Operation | In the first phase, it will start with 8 upazillas in Rajshahi district and ultimately it will cover 50 upazillas in greater Rajshahi, Bogra & Pabna districts by the fifth year. |
| Entrepreneurs to be benefited | Around 12,500 entrepreneurs will get credit facility and services from the project. Besides the project would create 37,500 new jobs. |
| Contribution to the economy | It will generate income of the entrepreneurs and employees of the enterprises. It has been estimated that non-farm income of the entrepreneurs will increase at least by 30%. The additional activities caused by this project will have positive impact on transport and other relevant service sectors. People associated with these ancillary sectors will contribute to the growth of GDP. |
| Achievement | The project has started its operation on 28.05.2003. |
SECP: Position of Loan Disbursement & Recovery (Tk Million)
| Loan Disbursement | Recoverable | Recovery | Rate of Recovery | Outstanding | ||
| Number | Amount | Number | Amount | |||
4,696 |
144.82 |
77.56 |
73.77 |
95% |
3,046 |
82.93 |
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