 Operational
issues (Membership, Loan, Innovative features)
Membership
- Any working child from
the age of 9 to 18 years.
- Both girls and boys
can be members of this bank.
- Children who pick
pocket and survive on thefts, and children involved
in peddling drugs, cannot be members.
- No minimum deposit is
required in order to open account. It may be 1
rupee/taka/afghani, 5 rupees/takas/afghani or 10
rupees/taka/afghani depending upon the saving of the
child. There is no fixed amount for the children to
deposit every month. Nevertheless, members are
encouraged to deposit a minimum amount daily.
Advance (Loan) to
Adolescents
CDB's principle of
granting advances (credit) to adolescents rests on the
philosophy that advances help
- to fulfil their dreams
- gives a sense of
achievement to the recipients
- helps in giving child
a respectable status in society
- gives a better quality
of life to children
- protects the dignity
of children
- protects children from
exploitation
Two different types of
credit are available in the CDB, both of which must be
repaid:
- Advance- like
an overdraft, no interest, short-term needs of child
only (e.g. buying clothes), and against the same
amount held on deposit with the CDB
- Loan - like a
loan, with loan interest added and loans are made
only from age 15 - 18 in Butterflies, but the
children can open accounts with the CDB from age 9 -
18.
Loans are relevant in the
CDB because it is primarily through the loan that the
child can either realise a business idea and take the
first steps toward financial independence, or obtain
education or a vocational qualification or more
training, enabling adolescents to take further steps to
secure their future.
Criteria for loan
- The member will have
to save money on a regular basis for 3 months, after
which she or he can apply for a loan.
- The member must have
minimum deposit of 20% of the total loan amount
desired
- A single person
or a group can apply for a loan.
- Every loan
application must have two guarantors.
- A member may not take
a loan on behalf of his/her parents, brothers and
sisters, or extended family.
- Loans will not be
given to start a cigarette/betel leave shop or to
sell drugs and alcohol or phonographic materials.
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