IDLC's full-fledged solution for women entrepreneurs
IDLC Finance yesterday unveiled a new financial solution for women entrepreneurs that will not only meet their capital needs but also take care of non-financial support they need to start or grow a business.
Called the IDLC Purnota, which means completeness, it offers special interest rates on loan and deposit products.
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 loan or 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 six months.
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, chief executive officer of IDLC, at the launch ceremony.
With the assistance from the International Finance Corporation, the non-bank financial institution has surveyed the country's women entrepreneurs and found a strong need for such non-financial support, he said.
The entrepreneurs will also receive assistance in obtaining trade licence, tax identification number, environment clearance certificate, import and export clearance certificate and certificate from other departments, 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 IDLC borrowers to mitigate the risks in their personal, business and family lives and during accidents and death at minimal 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 that entrepreneurs 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 full advantage of the growing digital world.
The Purnota will give more than 0.5 percent interest rates over the regular rates on deposits. IFC, the private sector 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 was the 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 financial institutions 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 during their pregnancy period, and the financial institutions give them the same performance score they get the previous year of their leave. The governor advised central bank officials to think about insurance schemes for women 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 entrepreneurs never default on their loans. So lending them makes commercial sense for banks. This is the best way to get rid 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 a successful foray into the SME segment. Five years ago, its SME loan portfolio was only Tk 285 crore, 21 percent of the total outstanding loans. Today, it stands at Tk 2,100 crore, which is 42 percent of the total loan portfolio.
The non-performing loan in the SME portfolio is 2.25 percent, one of the lowest among all the banking and non-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 the incumbent central bank governor. Rahman has put importance on the once-neglected segment of the customers as part of his financial inclusive agenda. Last year, Bangladesh Bank nominated IDLC as the best women-friendly financial institution in the country.
Anwarul Huq, chairman of IDLC Finance, and Md Abul Quasem, deputy governor of BB, were also present.