Important matter to be a POs of PKSF

According to the above-mentioned guideline, to become a PO, an organization should have the following features.

(i)         Organization :

-        The organization should have a legal basis i.e., if it is a non-government and voluntary organization it is to be registered with the appropriate registration authority such as the Directorate of Social Welfare, Department of Women's Affairs, Registrar of Cooperatives, NGO Affairs Bureau etc.

-        It should have a constitution duly approved by the concerned registration authority.

-        It should have a General Body and an Executive Committee approved by the concerned registration authority.

-        In case of government, semi-government and local bodies it must be formed lawfully.

-        The organization should have the mandate to operate credit program for self-employment and income-generation activities of the landless and assetless with an admissible service charge.

-        It should have a mandate to borrow money from the government, semi-government, private and any other organizations.

(ii)         Organizer :

-        The organizer or founder(s) should be socially reputable, respected, honest with intention to serve the poor people

-         Organizers are to be acceptable to the staff, group members and to the community in general.

-        The organizers should have the capability and vision to develop a future perspective and strategic plan of a development organization.

(iii)         Management :

-        The organization should have an organogram.

-        The chief executive should be full time and should possess the mentality to work on a long term basis.  In case of local organization the chief executive have to stay in the working area.

-        The chief executive should have good and dynamic leadership quality and should demonstrate good management capability and be able to formulate strategic plan for the organization.

-        The organization should have adequate number of regular and full time staff to ensure proper implementation of microcredit program.

-        The chief executive should have a good reputation and should be acceptable to the staff, group members, and to the community in general.

(iv)         Human resource:

-        The organization should have trained and skilled manpower to administer the organized group and to maintain a sound accounting system.

-        Staff should be honest, dedicated, and should possess missionary zeal.

(v)         Working Area :

-         Working area of the organization should be well suited for microcredit operation.  It should have good communication network, banking facility and easy access to market so that the borrowers can utilize their loan profitably.

-        It should be poverty stricken and such rural areas will be given preference.

-        There should be potentials for expansion of the program by avoiding duplication with the activities of the other organizations in the same area.

(vi)    Field activities :

-         Members organized would be the landless and assetless; the characteristic features of whom would be as follows: those residing in rural areas owning less than 0.50 acre of cultivable land or having total asset of the value less than that of one acre of land in the locality, would be considered as landless-assetless.

-         Members are to be organized in groups and groups must be formed with like minded people who should be conscious/careful about group discipline and regular in attendance in group meeting, and making saving deposits.  Members should have a minimum 6 months practice of regular saving deposit.

-        The organization should have at least 400 organized members, Tk. 0.2 million operating loan outstanding at field level and should have experience of at least 6 months successful microcredit operation.

-         Number of organized members should be consistent with the working/operating capital of the organization.

-         Groups should be organized within the 10 Km radius of the project office. 

-        In case of local organization 'Head Office' should be situated in the working/operational area.

-        The organization has to maintain a minimum loan recovery rate of 98% on a continuous basis. For a program operating for more than three years a minimum loan recovery rate of 95% has to be maintained on a continuous basis.

-         Overlapping with the activities of other organization in the same area must be avoided.

(vii)   Past Performance :

-        The organization should have a demonstrated experience of ensuring proper utilization of loan money with maintaining a high rate of recovery on a continuous basis.

-        It should have the evidence of successful implementation of all the programs undertaken by the organization.

-        It should have properly organized members and groups for successful operation of microcredit program.

(viii)         Management Information System (MIS) :

-         System for collecting information from member, group and office level for proper management and monitoring of the microcredit program should be present.

-         Adequate information should be available regarding microcredit operation.

(ix)         Accounting System :

-        The organization should maintain a sound, systematic, correct, detailed and transparent accounting system.

-        The organization should not have case of any misappropriation or illegal withdrawal of fund.

-         Savings account of the group members must be complete, detailed, transparent and correct.

-        All the accounts should be duly audited by the proper authority and the reports should be readily available.

-        All the accounts must be correct and updated.