IFAD and NGOs - Dynamic partnership to fight rural poverty

IFAD’s collaboration with NGOs began shortly after the creation of the Fund, when it supported the Small Farmer Agricultural Credit Project in Bangladesh.

In 1976, an NGO, led by Professor Mohammed Yunus of Chattagong University, started an innovative
approach to credit delivery to the rural poor, especially to women and the landless, in a single village.

The formation and training of small groups through which loans were provided was a central feature of the initiative. Mobile credit officers brought the service to the villagers, and effective supervision of loan recoveries ensured repayment rates of close to 98%.