Microfinance: DABI

DABI (Microloans): These loans, which range from USD 50 – 700, are given exclusively to individual women who are serviced in a group setting, namely the Village Organisation (VO). The VO acts as an informal guarantor by creating peer pressure for timely repayment. Borrowers repay through weekly installments and deposit savings during VO meetings, held every week in a borrower’s courtyard. Microloans are generally used for small operations in poultry, livestock, fruit and vegetable cultivation, handicrafts or rural trade.

BRAC has also developed a specialised microloan scheme to encourage the financial empowerment of adolescent girls, to help them continue their education and prepare for future financial responsibilities. Under this programme, small loans, starting from USD 40, are coupled with savings facilities and livelihood training, to help girls start small home-based enterprises.