Comprehensive Policy & Operations Manual - Part 2
1. Introduction
Prothik Agrajatra Foundation is a non -profit organization committed to empowering low - income households through responsible financial inclusion, entrepreneurship promotion, and community development. This Manual provides the operational framework for all staff, management, and governing bodies to ensure transparency, accountability, and
consistent service delivery.
2. Vision
To create an inclusive and equitable Bangladesh where economically disadvantaged individuals, families, and marginalized communities have equal access to affordable financial services, sustainable livelihood opportunities, and the resources necessary to achieve economic independence and social well -being. We envision a society in which every person —regardless of income, gender, location, or social background —has the opportunity to build assets, develop skills, start or expand income -generating activities, and participate fully in the nation's economic growth. Through responsible microfinance, financial inclusion, capacity -building initiatives, and community-driven development programs, we aspire to reduce poverty, strengthen resilience against economic shocks, promote entrepreneurship, empower women and youth, and foster long -term prosperity. Our vision is a Bangladesh where inclusive economic opportunities enable people to improve their quality of life, uphold their dignity, and contribute to sustainable national development.
Mission
Provide responsible microcredit services for productive purposes.
Encourage entrepreneurship and income generation.
Support women’s economic participation and youth development.
Promote financial literacy and community resilience.
Operate with integrity, accountability, and transparency.
Core Values
1. Integrity
We uphold the highest standards of honesty, ethics, and professionalism in all our actions and decisions. We are committed to conducting our operations fairly, complying with applicable laws and regulations, and maintaining the trust of our clients, employees, partners, donors, and stakeholders.
2. Accountability
We take responsibility for our decisions, actions, and the impact of our programs. We ensure that resources are managed efficiently and transparently, and that we remain answerable to our clients, regulators, funding partners, and the communities we serve.
3. Transparency
We believe in open and clear communication regarding our policies, financial services, pricing, and organizational performance. We provide accurate information to stakeholders and maintain transparent systems that promote confidence and informed decision -
making.
4. Respect
We treat every individual with dignity, fairness, and compassion, regardless of their economic status, gender, age, religion, ethnicity, or background. We foster a culture of mutual respect within our organization and in all interactions with clients and
communities.
5. Inclusiveness
We are committed to creating equal opportunities for underserved and marginalized populations, including women, youth, persons with disabilities, and rural communities. Our services are designed to promote financial inclusion and ensure that no one is excluded from opportunities for economic advancement.
6. Innovation
We continuously seek creative and practical solutions to improve financial services and community development. By embracing technology, new ideas, and evidence -based practices, we strive to enhance efficiency, accessibility, and the positive impact of our
programs.
7. Sustainability
We promote long -term social, economic, and environmental sustainability in all our initiatives. Our goal is to build resilient communities, support responsible financial practices, and ensure that our institution remains financially sound for future generations.
8. Client-Centered Service
Our clients are at the heart of everything we do. We are dedicated to understanding their needs, providing fair and affordable financial products, protecting their rights, and delivering responsive, respectful, and high -quality services that help them achieve lasting
economic empowerment.
3. Organizational Structure
The Foundation may include:
Board of Trustees/Directors
Executive Director or Chief Executive Officer
Finance Department
Human Resources Department
Operations Department
Branch Managers
Loan Officers
Accounts Officers
Internal Auditor
Compliance Officer
Administrative Staff
Each employee shall have written job responsibilities and reporting relationships.
4. Governance Policy
The Board shall provide strategic oversight, approve budgets and major policies, review organizational performance, monitor risk, and ensure compliance with applicable legal
and regulatory requirements. The Executive Director shall be responsible for implementing Board decisions and managing day-to-day operations. Committees such as Audit, Finance, or Risk Committees may be established where
appropriate.
5. Human Resources Policy
Recruitment Hiring shall be based on qualifications, merit, integrity, and organizational needs.
Probation New employees may complete a probationary period before confirmation.
Training All staff should receive induction training and periodic professional development.
Performance Evaluation Performance reviews should consider productivity, ethics, compliance, teamwork, and
achievement of objectives.
Leave The Foundation may provide annual leave, casual leave, sick leave, maternity or paternity leave, and public holidays according to organizational policy and applicable law.
Code of Conduct
Employees shall:
Maintain honesty and professionalism.
Respect clients and colleagues.
Protect confidential information.
Avoid conflicts of interest.
Refrain from fraud, bribery, or harassment.
6. Microcredit Operations Policy
Eligible Borrowers
Applicants must:
Be at least 18 years old.
Be a citizen or lawful resident eligible under applicable law.
Have a viable income-generating activity.
Complete required identification and verification procedures.
Agree to comply with Foundation policies.
Loan Process
1. Application submission.
2. Field verification.
3. Credit assessment.
4. Approval by authorized officer or committee.
5. Loan agreement execution.
6. Disbursement.
7. Monitoring.
8. Collection and portfolio review.
Applicants should:
Be adults legally capable of entering into agreements.
Have a viable income-generating activity or business plan.
Successfully complete identification and assessment procedures.
Agree to comply with Foundation lending terms.
Loan Purposes
Loans may support:
Small businesses
Agriculture
Livestock
Fisheries
Cottage industries
Retail trade
Service enterprises
Other lawful productive activities
Loan Limits
Indicative loan size:
Minimum: BDT 5,000
Maximum: BDT 100,000
Loan amounts should reflect repayment capacity and organizational policy.
7. Loan Approval and Disbursement Procedures
1. Receive Completed Application
The loan process begins when the applicant submits a duly completed loan application form along with all required supporting documents, such as proof of identity, photographs, address verification, business information (if applicable), and any other documents required by the organization. The receiving officer shall verify that the application is complete before accepting it for processing. 2. Verify Applicant Information The assigned credit officer shall verify the accuracy and authenticity of the information provided by the applicant. This includes confirming personal details, household information, income sources, employment or business activities, references, and any guarantor or group information. False or misleading information may result in rejection of
the application.
3. Conduct Field Assessment
A field visit shall be conducted to assess the applicant’s residence, business premises, or proposed income-generating activity. The purpose is to verify the information provided in the application, evaluate the applicant’s living and business conditions, and assess the feasibility of the proposed use of the loan.
4. Evaluate Repayment Ability
The credit officer shall assess the applicant’s capacity to repay the loan by reviewing income, expenses, existing debts, cash flow, business performance, and other relevant financial factors. The evaluation should ensure that the proposed loan amount is affordable and does not create excessive financial burden for the borrower.
5. Prepare Assessment Report
Following verification and field assessment, the credit officer shall prepare a comprehensive assessment report summarizing the applicant’s profile, loan purpose, financial condition, repayment capacity, identified risks, and recommendation for approval or rejection. The report shall be supported by relevant documentation and submitted to the approving authority. 6. Obtain Approval from Authorized Personnel Loan applications shall be reviewed and approved only by officers or committees authorized under the organization’s delegation of authority. Approval decisions shall be based on established eligibility criteria, risk assessment, and compliance with internal policies. Any exceptions must be documented and approved at the appropriate level.
7. Execute Loan Documentation
Before loan disbursement, the borrower shall sign all required legal and contractual documents, including the loan agreement, repayment schedule, declarations, guarantees (if applicable), and consent forms. The organization shall ensure that the borrower clearly understands the loan terms, interest or service charges, repayment obligations, and
consequences of default. 8. Disburse Funds Through Approved Methods Upon completion of all approval and documentation requirements, the loan amount shall be disbursed through approved and secure channels, such as bank transfer, mobile financial services, or authorized cash disbursement procedures. A formal record of the transaction shall be maintained, and the borrower shall receive confirmation of the
disbursement.
9. Maintain Complete Records
The organization shall maintain a complete and accurate file for each loan, including the application form, verification records, field assessment report, approval documents, signed agreements, disbursement records, repayment history, correspondence, and any subsequent amendments. Records shall be stored securely and retained in accordance with applicable legal, regulatory, and organizational requirements.
8. Repayment and Recovery Policy
The Repayment and Recovery Policy establishes the procedures for collecting loan repayments in a fair, transparent, and respectful manner while promoting responsible lending and protecting the rights and dignity of borrowers. The organization is committed to supporting clients in meeting their repayment obligations without resorting to coercive or
unethical practices.
1. Repayment Schedule
Loan repayments shall be made according to the repayment schedule agreed upon at the time of loan approval and documented in the loan agreement. Depending on the loan product, repayments may be collected on a weekly, bi -weekly, or monthly basis. Borrowers shall be informed in advance of all payment dates, installment amounts, and
acceptable payment methods.
2. Borrower Responsibility
Borrowers are expected to make timely repayments in accordance with the agreed schedule and to use the loan funds for the approved purpose. They should notify the organization as soon as possible if they anticipate any difficulty in making scheduled
payments.
3. Monitoring of Repayments
Credit officers shall regularly monitor repayment performance and maintain accurate records of all payments received. Any missed or delayed installment shall be identified promptly through the organization’s loan tracking system, and appropriate follow -up
actions shall be initiated. 4. Early Intervention in Case of Payment Difficulties If a borrower fails to make a scheduled payment or indicates financial hardship, the responsible credit officer shall contact the borrower promptly to discuss the situation. The objective is to understand the underlying reasons for the delay, assess the borrower’s current financial circumstances, and explore practical solutions to facilitate repayment. 5. Assessment of Delinquent Accounts
Before taking further recovery measures, the organization shall conduct a reasonable assessment of the borrower’s circumstances, including business performance, household income, unexpected emergencies, natural disasters, health issues, or other factors affecting repayment capacity. All findings shall be documented in the borrower’s file. 6. Loan Restructuring or Rescheduling Where justified by the borrower’s circumstances and permitted under organizational policy and applicable laws, the organization may approve loan restructuring or rescheduling. Such measures may include extending the repayment period, revising installment amounts, or implementing other approved arrangements that improve the borrower’s ability to repay while safeguarding the institution’s financial sustainability. Any restructuring shall require proper authorization and written documentation. 7. Respectful Recovery Practices All recovery activities shall be conducted with professionalism, courtesy, and respect for the borrower’s dignity and privacy. Staff members shall communicate clearly, maintain confidentiality, and seek voluntary cooperation in resolving repayment issues. Recovery efforts should prioritize dialogue and mutually acceptable solutions. 8. Prohibited Collection Practices Under no circumstances shall staff or representatives engage in intimidation, threats, harassment, public humiliation, physical force, unlawful entry, discrimination, or any other coercive or illegal conduct during the collection process. The organization maintains a zero-tolerance policy toward abusive recovery practices, and violations may result in
disciplinary action. 9. Documentation and Record Keeping All repayment transactions, follow -up communications, restructuring decisions, recovery actions, and borrower interactions shall be accurately documented and securely maintained. These records shall support transparency, internal monitoring, audits, and
regulatory compliance. 10. Escalation and Legal Action Where borrowers remain unwilling to repay despite reasonable recovery efforts and no mutually acceptable solution can be reached, the organization may pursue recovery through lawful procedures consistent with applicable laws, contractual obligations, and internal policies. Legal action shall be considered only after appropriate review and
authorization by management. 11. Client Education and Financial Responsibility The organization shall promote responsible borrowing by educating clients on loan obligations, repayment planning, budgeting, and sound financial management.
Strengthening clients’ financial capability contributes to improved repayment performance and sustainable economic development
9. Savings and Client Services (Optional)
Where permitted by law and organizational authorization, additional financial services may be offered subject to appropriate approvals and safeguards. Clients should receive clear information regarding available services and applicable terms.
10. Finance and Accounts Policy
The Finance and Accounts Policy establishes the principles and procedures for the sound financial management of the organization. It aims to ensure transparency, accountability, accuracy, and compliance with applicable laws, donor requirements, and internal controls while safeguarding the organization’s financial resources. 1. Maintain Complete Accounting Records The organization shall maintain accurate, complete, and up-to-date accounting records for all financial transactions. Every receipt, payment, asset acquisition, liability, income, and expense shall be properly recorded in the accounting system using accepted accounting principles. Financial records shall be retained securely for the period required by law and
organizational policy.
2. Prepare Annual Budgets
An annual operating budget shall be prepared before the beginning of each financial year and approved by the appropriate governing authority. The budget shall estimate expected income and planned expenditures for all programs and administrative activities. Management shall regularly monitor actual performance against the approved budget and investigate significant variances. 3. Reconcile Bank Accounts Regularly All bank accounts maintained by the organization shall be reconciled with accounting records on a monthly basis or more frequently where necessary. Bank reconciliations shall be independently reviewed to identify discrepancies, unauthorized transactions, or accounting errors and ensure that financial records remain accurate and complete. 4. Support Expenditures with Documentation
Every financial transaction shall be supported by adequate documentation, including invoices, receipts, payment vouchers, contracts, purchase orders, payroll records, or other relevant evidence. No payment shall be processed without proper authorization and sufficient supporting documents demonstrating that the expenditure is legitimate, necessary, and in accordance with organizational policies. 5. Produce Periodic Financial Statements The finance department shall prepare timely and reliable financial reports on a monthly, quarterly, and annual basis, as required by management, the Board, donors, or regulatory authorities. Financial statements shall present a true and fair view of the organization’s financial position and include information on income, expenditures, assets, liabilities, cash flows, and budget performance. 6. Safeguard Organizational Assets The organization shall implement effective internal controls to protect cash, bank balances, equipment, vehicles, inventories, investments, documents, and other assets against loss, theft, fraud, misuse, or unauthorized access. Asset registers shall be maintained, and periodic physical verification shall be conducted to confirm the existence and condition of organizational property.
7. Cooperate with Audits
The organization shall fully cooperate with internal auditors, external auditors, regulators, donors, and other authorized reviewers. Finance staff shall provide access to financial records, supporting documents, and explanations as required. Audit findings and recommendations shall be reviewed promptly, and appropriate corrective actions shall be implemented to strengthen financial management and internal controls. 8. Internal Controls and Segregation of Duties Financial responsibilities shall be appropriately segregated so that no single individual has complete control over the authorization, processing, recording, and custody of assets for the same transaction. Approval limits, dual signatory requirements, and supervisory reviews shall be established to reduce the risk of errors and fraud.
9. Cash Management
Cash receipts shall be deposited promptly into authorized bank accounts, and cash payments shall be minimized whenever practical. Petty cash shall be maintained within approved limits and supported by proper vouchers and regular reconciliations. 10. Compliance and Ethical Conduct All financial activities shall comply with applicable laws, regulatory requirements, donor agreements, tax obligations, and organizational policies. Employees involved in financial
management shall perform their duties honestly, avoid conflicts of interest, and immediately report any suspected fraud, irregularity, or misuse of funds.
11. Procurement Policy
Purchases should be:
Necessary for operations.
Cost-effective.
Properly approved.
Documented.
Conducted fairly and transparently.
Competitive quotations should be obtained when appropriate.
12. Internal Control and Audit
Internal controls should include:
Segregation of duties.
Authorization limits.
Periodic reconciliations.
Document retention.
Supervisory review.
Internal audits should independently examine compliance and recommend
improvements.
13. Risk Management Policy
The Foundation should identify and manage:
Credit Risk Risk that borrowers fail to repay loans.
Operational Risk Risk arising from process failures, human error, or system weaknesses.
Financial Risk Risk relating to liquidity, budgeting, and cash management.
Compliance Risk Risk associated with failure to comply with legal or regulatory obligations.
Reputational Risk Risk of public distrust resulting from poor governance or unethical conduct. Risk assessments should be conducted periodically and mitigation measures
documented.
14. Fraud Prevention and Ethical Conduct
The Foundation maintains zero tolerance for:
Fraud
Embezzlement
Bribery
Forgerya
Corruption
Misuse of organizational property
Employees should report suspected misconduct through established reporting channels.
15. Data Protection and Record Management
Client and employee information should be:
Collected for legitimate purposes.
Stored securely.
Accessible only to authorized personnel.
Retained and disposed of according to applicable policies and legal requirements.
16. Monitoring and Evaluation
Management should track:
Portfolio quality.
Repayment performance.
Operational efficiency.
Outreach.
Client satisfaction.
Social and economic outcomes.
Findings should inform strategic planning and program improvements.
17. Complaint and Grievance Redress Mechanism
Clients and employees should have accessible channels for submitting complaints.
Complaints should be:
Logged.
Reviewed impartially.
Investigated promptly.
Resolved within a reasonable timeframe.
Documented for accountability.
Retaliation against complainants should not be tolerated.
18. Business Continuity and Disaster Response
The Foundation should maintain contingency plans to continue essential operations during emergencies such as natural disasters, technology failures, or other disruptions.
19. Anti-Corruption Policy
The Foundation prohibits bribery, kickbacks, facilitation payments, and other corrupt
practices.
Staff and representatives should avoid conflicts of interest and disclose situations that could compromise impartiality.
20. Policy Review and Amendment
This Manual should be reviewed periodically by management and the Board to ensure continued relevance and alignment with organizational objectives, operational needs, and applicable legal and regulatory developments. Approved amendments should be communicated to relevant personnel and implemented consistently across the organization.