Mfin-NUPRP

Saving and Credit management refers to the capacity of the Community Organizations to manage the savings and credit groups (SCGs) that it represents in each Community Development Committee (CDC). The CDC and SCGs monitor and manage weekly or monthly savings of their members, and create access to loans facilities, and make timely repayments. There are approximately 10 - 15 Savings and Credit groups (SCGs) that are active under a CDC. National Urban Poverty Reduction Programme (NUPRP) has hired SoftBD to provide technical support to develop software and mobile app to manage Savings and Credit Component of more effectively and efficiently. Leaders of community organizations and community frontline volunteers are the key user of the software and mobile app. Savings, and Credit component is totally a community led approach. Leaders of Community organisations plan, organise, supervise and evaluate their own Savings and Credit Group (SCGs), which works towards ensuring their sustainability.

Moreover, SCGs create opportunities for the urban poor to access a savings and loan facility that they can used for livelihood and wellbeing activities of their families. A core component for the successful functioning of SCGs is the creation of a revolving fund at the community level from which credit operations can be managed. Group formation and social collateral are the principles on which the community organisations operate their savings and credit activities. Community Development Committee (CDC) is the centre to manage Savings and Credit activities, the size of the CDC should be at least 10 SCGs and or 200 members in the initial year and should be possible to grow gradually up to 10-15 SCGs or 300 more member’s maximum. The purposes of savings and credit activity are to build primary group solidarity and empowerment, promote savings habits and build financial management skills, and provide access to financial services at a rate less than of the micro-finance institutions. Members in community-managed savings and credit groups (SCGs) tend to avoid loans from non-community-managed sources as they lose the interest and management fees and prefer to have fund which are entirely in their control. In fact, Savings and credit is the main nucleus of sustianbaility of the NUPR programme.

This software and app will apply into all 19 project cities/towns. Mobile application has maintained by the SoftBD on annual basis as long as Project serving in the city corporation and Paurashava. The project will develop an existing plan while it will close and request City Corporations and Paurashava to continue the functionalities to sustain the activities of saving and credit software.