Padakhep Manabik Unnayan Kendra

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Padakhep Manabik Unnayan Kendra is a national non-governmental organization (NGO) in Bangladesh, established in 1984 that provides microfinance programs for economically disadvantaged individuals including youth and women.
What are the main aims and objectives?

Primarily, Padakhep seeks to alleviate poverty through empowering disadvantaged groups, including women, children, and the rural poor, by providing access to education, healthcare, and financial services. The organization is committed to promoting economic self-reliance by offering microfinance and entrepreneurial support, thus enabling individuals to generate their own income. Additionally, Padakhep focuses on enhancing social justice and equity, advocating for the rights of vulnerable populations, and fostering community development through participatory approaches. Environmental sustainability and disaster risk reduction are also key components of their mission, ensuring that development efforts are resilient and inclusive. Overall, Padakhep aims to create a more equitable society by addressing the root causes of poverty and empowering communities to achieve their full potential.

How does the program work?

Padakhep Manabik Unnayan Kendra offers several microfinance programs designed to support the financial needs of both rural and urban poor in Bangladesh: 

  • Jagoron Program: This program is an extension of Padakhep's microfinance services, aimed at providing financial support to the rural and urban poor. It was developed to merge the former rural microcredit initiatives and expand the reach of financial services to a broader population.
  • Agrosor Program: This initiative focuses on financing the credit needs of progressive borrowers. It operates under a separate umbrella to cater specifically to individuals who have demonstrated potential for growth and require additional financial support to expand their ventures

Padakhep Manabik Unnayan Kendra has developed specific financial products to support street children (age 8-18) in gaining access to credit and banking services. Here are the key components of their approach:

  • Deposit Services: Padakhep provides reliable, convenient, and flexible deposit services specifically tailored for street children. This initiative is part of their broader effort to integrate street children into the formal financial system, helping them to save money securely.
  • Access to Savings and Credit: Street children in Dhaka benefit from Padakhep's programs that offer them access to both savings and credit facilities. This enables them to manage their finances better and potentially invest in income-generating activities.
  • Comprehensive Support: Beyond financial services, Padakhep follows a comprehensive microfinance-plus framework. This includes providing vocational training and social services, which are crucial for the holistic development of street children. These additional services help equip them with skills and knowledge necessary for improving their socio-economic status.

Through these initiatives, Padakhep aims to empower street children by integrating them into the financial system and providing them with the tools needed for a more secure and stable future.

What is the overall cost?

As of 2022, Padakhep has distributed over $1.6 billion in loans. 

How was it implemented?

Padakhep Manabik Unnayan Kendra was established in 1986 in a small remote village in the Barisal district of Bangladesh. The organization was founded with the aim of utilizing its resources to improve the socio-economic conditions of marginalized and vulnerable communities, focusing on women and children. Its creation was driven by the vision of its founder, Bir Muktijoddha ABM Siddique, who has been instrumental in guiding the organization towards its goals. Over the years, Padakhep has grown into a leading national development organization, implementing a wide range of programs that address poverty alleviation, social development, climate change, health and nutrition, sanitation, microfinance, education, and skill development. The organization aligns its efforts with the Sustainable Development Goals (SDGs), emphasizing a holistic approach to development that seeks comprehensive progress and sustainable change in the communities it serves.

What impact has been measured?

As of 2024 Padakhep has supported 1,047,500 individuals in Bangladesh with the support of their 497,135 members and 392 branches that are operational.

As of the 2022 annual report they have:

  • 347,282 active borrowers
  • Disbursed active loans amounting to BDT 39,059.68 million (approx. $326.9 million)
  • Cumulative disbursed loans amount to BDT 191,963.58 million (approx. $1.6 billion)

 

 

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom