idlc launches exclusive women entrepreneurs' loan · star business report idlc finance...
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IDLC launches exclusive women entrepreneurs' loan
IDLC Finance Tuesday unveiled a unique financial solution for women entrepreneurs in Bangladesh.
The product, named "IDLC Purnota", is structured to meet both financial and nonfinancial needs of womenentrepreneurs across Bangladesh.
IDLC Purnota offers special interest rates on loan and deposit products, an opportunity to network with fellowentrepreneurs, health insurance coverage, different training opportunities, Ecommerce platform, dedicated helpline, legal documentation support, and special discount cards for great shopping experience.
Purnota is IDLC's vision to develop and grow women entrepreneurship that helps create more equitable societyand resource distribution.
Dr. Atiur Rahman, Governor of Bangladesh Bank, M. Abul Quaem, Deputy Governor of Bangladesh Bank, AnwarulHuq, Chairman, IDLC Finance Limited, and Selim R.F. Hussain, CEO & MD, IDLC Finance Limited were present atthe launching ceremony.
"IDLC Purnota not only meets traditional financial needs of women entrepreneurs, but also provides the variousother nonfinancial support that women need to start or grow a business. We have seen these kind of servicesoffered in other developing countries and, with the assistance of the IFC, have surveyed our own Bangladeshiwomen entrepreneurs and found that there is a strong need for such nonfinancial support" Selim R.F. Hussain,CEO & Managing Director, IDLC Finance, shared his thought on the launching occasion.
The IDLC Group is the largest multiproduct NonBank Financial Institution in Bangladesh with over 1,300 staffand 31 branches. IDLC Finance, the Group's parent company, maintains equal focus in the Corporate, Consumerand SME segments. IDLC Finance also has a significant presence in the Capital Markets through its whollyownedsubsidiaries, IDLC Investments Ltd. and IDLC Securities Ltd.
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Publish : 10 Jun, 2015 00:00:00
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Bangladesh Bank Governor Atiur Rahman poses with board members and senior management of IDLC Finance at the launch of anew financial solution for women entrepreneurs at Radisson Hotel in Dhaka yesterday. BB Deputy Governor Md Abul Quasem, IDLCChairman Anwarul Huq and IDLC CEO Selim RF Hussain were also present. Photo: IDLC
Star Business Report
IDLC Finance yesterday unveiled a new financial solution for women entrepreneurs that will not only meettheir capital needs but also take care of non-financial support they need to start or grow a business.
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12:00 AM, June 10, 2015 / LAST MODIFIED: 12:00 AM, June 10, 2015
IDLC's full-fledged solution for womenentrepreneurs
Called the IDLC Purnota, which means completeness, it offers special interest rates on loan and depositproducts.
It also offers an opportunity to network with fellow entrepreneurs, health insurance coverage, training, e-commerce platform, helpline, legal documentation support and special discount cards for shopping.
For instance, an applicant will know within three days of their application whether they are getting the loanor not.
Besides, no loan application can be rejected without the approval of the SME division of IDLC Finance.
The new entrepreneurs from manufacturing and services sectors will enjoy grace periods from three to sixmonths.
They will get loans of up to Tk 50 lakh at 10 percent interest rates under the central bank refinancing scheme.
They can also get Tk 25 lakh in collateral-free loans.
“We have seen these kinds of services offered in other developing countries,” said Selim RF Hussain, chiefexecutive officer of IDLC, at the launch ceremony.
With the assistance from the International Finance Corporation, the non-bank financial institution hassurveyed the country's women entrepreneurs and found a strong need for such non-financial support, hesaid.
The entrepreneurs will also receive assistance in obtaining trade licence, tax identification number,environment clearance certificate, import and export clearance certificate and certificate from otherdepartments, said Zahid Ibne Hai, head of IDLC's SME division.
Green Delta Insurance, one of the leading insurers, will provide a structured insurance scheme for the IDLCborrowers to mitigate the risks in their personal, business and family lives and during accidents and death atminimal cost.
IDLC also has opened a dedicated helpline – 16409 -- for women entrepreneurs.
From time to time, the non-bank financial institution will organise sessions across the country so thatentrepreneurs can meet each other, share knowledge and strengthen their networking.
They will be given training on accounting, capital management, marketing, human resources management,enhancing productivity and improving the quality of products.
They will be provided training to launch e-commerce sites and page development such that they can take fulladvantage of the growing digital world.
The Purnota will give more than 0.5 percent interest rates over the regular rates on deposits. IFC, the privatesector lending arm of the World Bank, helped design the products.
The features of the Purnota immediately won the heart of Bangladesh Bank Governor Atiur Rahman, who wasthe chief guest at the event held at the capital's Radisson Blu Water Garden Hotel.
He immediately advised the present senior officials from the central bank to pursue other financialinstitutions to design similar products for women entrepreneurs.
The central bank will soon issue a notice so that the expecting employees enjoy all the service benefits duringtheir pregnancy period, and the financial institutions give them the same performance score they get theprevious year of their leave. The governor advised central bank officials to think about insurance schemes forwomen entrepreneurs and small and medium enterprises.
The financial markets too should design products for the women entrepreneurs.
Defending women entrepreneurs, Rahman said: “It has already been proved that women entrepreneursnever default on their loans. So lending them makes commercial sense for banks. This is the best way to getrid of the default loan culture.” IDLC Finance has grown to become the largest NBFI in Bangladesh.
In 2010, it had a loan portfolio of Tk 1,358 crore, which in five years grew to Tk 5,000 crore, thanks to asuccessful foray into the SME segment. Five years ago, its SME loan portfolio was only Tk 285 crore, 21percent of the total outstanding loans. Today, it stands at Tk 2,100 crore, which is 42 percent of the total loanportfolio.
The non-performing loan in the SME portfolio is 2.25 percent, one of the lowest among all the banking andnon-banking players, while the NPL is 0.07 percent when it comes to women entrepreneurs.
IDLC Finance's achievement represents the growth of the country's SME sector during the tenure of theincumbent central bank governor. Rahman has put importance on the once-neglected segment of thecustomers as part of his financial inclusive agenda. Last year, Bangladesh Bank nominated IDLC as the bestwomen-friendly financial institution in the country.
Anwarul Huq, chairman of IDLC Finance, and Md Abul Quasem, deputy governor of BB, were also present.