‘Interest, collateral-free loans can be a blessing for low-income people’

Helpotherbd.com, a volunteer organisation of the Education and Research Foundation, is providing interest and collateral-free loans ranging from Tk1,000 to Tk10,000 to the low-income people of the country aiming to generate their socio-economic development.

Organisers of the platform said at a programme on Thursday that at first, a borrower will get Tk1,000 for three months. If he returns the money within the stipulated time, he will get Tk2,000 more. In this process, a borrower can get a loan of a maximum of Tk10,000 without any interest or security money.

The programme titled "Interest-Free Financial System: Possibilities and Problems" was arranged on the third anniversary of Helpotherbd.com at the National Press Club, Dhaka on Thursday.

Speakers at the programme said the low-income people of the country are trapped in a web of loans with high interest rates. Many NGOs provide loans at a 15%-20% interest rate on paper but actually collect 36%-40% interest. As a result, there is no change in the living conditions of low-income people.

Rafiq Hasan, chairman of the Education and Research Foundation, said, "Many people get caught in the web of high-interest rates unwillingly. That is why we tried to develop a model for interest-free loan facilities for the marginalised people during the Covid-19 pandemic."

"Experimentally, we disbursed loans in the Gopibagh area of the capital, Narayanganj's Sonargaon, and Pirojpur's Dumuria upazila. The surprising thing is that 95% of the borrowers returned the money within the specific time," he added.

He further said, "We tried to develop three groups of volunteers under Helpotherbid.com. The first group of volunteers are those who donate money. The second group are the depositors who deposit a fixed amount of money and withdraw it after a fixed time. They do not receive any interest or profit. The third group of volunteers are the recipients."

B Muhammad Sanaullah, director of the foundation, banker Kamal Uddin Jasim, economist Md Mizanur Rahman, and AKM Muntasir Ahmed were also present at the event among others.