Livelihood Improvement Loan

Project Summary

The Living Standards Improvement Loan Program was implemented by Shishu Niloy Foundation (SNF) from October 2015 to June 2026 with financial assistance from PKSF. The project was carried out through the Elangi Branch in Elangi Union of Kotchandpur Upazila, Jhenaidah District under the ENRICH Program.

The program was designed to support poor and ultra-poor households by providing small, affordable loans to meet essential household needs that are often overlooked by conventional financial services. During the project period, PKSF provided a total of BDT 39.00 lakh through 14 instalments, benefiting 65 organized members, including 58 women and 7 men. The program was managed by a dedicated team of 9 staff members.

With a maximum loan ceiling of BDT 10,000 at an affordable 8% service charge, the project enabled beneficiaries to improve their living conditions through investments such as house renovation, installation of sanitary latrines and tube wells, purchase of solar home systems, quilts, food, medicine, and other essential household needs.

Goal

To improve the living standards and overall well-being of poor and ultra-poor households by enabling them to meet their basic needs through accessible, affordable, and need-based financial services.

Objectives

  • Improve the quality of life of disadvantaged households by addressing their fundamental needs.
  • Provide affordable loans for essential household improvements and emergency expenditures.
  • Promote safe drinking water, improved sanitation, and better housing conditions.
  • Enhance household resilience by reducing financial vulnerability during emergencies.
  • Complement income-generating loans with livelihood support that strengthens family welfare and human development.

Impact

The project significantly contributed to improving the living conditions of beneficiary families. Access to affordable loans enabled households to install sanitary facilities, access safe drinking water, improve housing, adopt renewable energy through solar systems, and meet urgent health and nutrition needs. The program also reduced the dependence of poor families on informal high-interest lenders, helping them achieve greater financial security and dignity.

By prioritizing women as the primary beneficiaries, the project strengthened women’s participation in household decision-making and enhanced their role in improving family welfare.

Achievements

  • Successfully implemented the project over an eleven-year period (2015–2026).
  • Disbursed BDT 39.00 lakh through 14 instalments.
  • Provided financial support to 65 poor and ultra-poor households, including 58 women and 7 men.
  • Improved access to safe sanitation, clean water, better housing, renewable energy, healthcare, and essential household items.
  • Maintained affordable financing with an 8% service charge, making the loans accessible to vulnerable families.
  • Strengthened the social and economic resilience of beneficiary households through need-based financial assistance.

Challenges

  • Limited loan ceilings sometimes restricted beneficiaries from undertaking larger household improvements.
  • Rising costs of construction materials and essential commodities reduced the purchasing power of loan amounts.
  • Economic shocks and health-related emergencies occasionally affected beneficiaries’ repayment capacity.
  • Increasing demand for livelihood improvement loans exceeded the available project resources.

Learning The project demonstrated that small, affordable loans dedicated to basic household needs can create significant improvements in the quality of life of poor families. Integrating livelihood support with social development interventions such as sanitation, housing, healthcare, and renewable energy produces more sustainable outcomes than income-focused financing alone. The experience also highlighted the importance of prioritizing women as borrowers, as they consistently invested in family welfare and contributed to long-term household resilience. Future programs can achieve even greater impact by increasing loan ceilings, expanding coverage, and integrating financial services with awareness-building and technical support.

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