An Internship Report On LOAN ADVANCE SYSTEM OF ECO-SOCIAL DEVELOPMENT ORGANIZATION (ESDO) STUDY IN CONTEXT OF BONPARA, NATORE

Abstract

This study is a result of short term basis research activity and observation. After the completion of theoretical part of two years EMBA program, this is a short run practical application of knowledge to explore the problems associated with loan and advances practices in ESDO NGO. NGO is one of the largest and oldest private sector commercial NGO in Bangladesh. It has 211 branches at home and 600 affiliates worldwide create efficient networking and reach rate capability. ESDO adapts new technology both in terms of equipment and practice ensures efficient service to its clients. The term loan and advances, used in this study, means sanctioning and collecting the loan amount with due interest though there are some sort of reschedule and rephrase in this process. Loan sanctioning and recovery is an important part of organizational activities of any organization dealing with loan facilities. ESDO is a private NGO; it is a provider of both long and medium-term loan facilities to various industrial organizations and projects. This study is a bridge between the theory part of education and practical process of loan and advances sanctioning and recovery of ESDO. Introduction part of this study represents the paper exhibits, in details, the research methodology, objectives and limitations of the study. The objective of this study is to explore the loan and advances of ESDO NGO. Analysis part is decorated by various sector-wise loan sanctions and disbursement for last few financial years of ESDO. Several tables have been used to see and analyze the information more closely. These tables show the sector-wise loan sanctioning and outstanding in each of these financial years. Beside this the tables also represent a percentage of loans in each sector compared to other different sectors. Other some tables represent the percentage of mode-wise Loan sanctions. Comparison to other Institutions with ESDO is representing 15 there. Loan and Advances operation are described there. Approval and loan disbursement process flow are described graphically. The loan and advance department takes a long time to process a loan because the process of sanctioning loan is done manually. Since loan and advances department is not fully automated there is a high risk of losing documents of disbursed loans. Small entrepreneurs are discouraged because ESDO usually doesn’t want to finance small entrepreneurs whose financial standing is not clean to them. Finally some recommendations have been provided, on part of this study, for ESDO which will be beneficial for its loan approval and recovery process as well as overall loan practices of ESDO NGO. The procedure of loan sanctioning should be automated to make sanctioning of loan less time consuming and reducing the risk of losing documents of disbursed loans. The NGO should diversify its loans more to finance small entrepreneurs for better growth of the country.