Berendina serves struggling rural and plantation communities during COVID-19
View(s):Berendina, an NGO focusing on poverty alleviation since 1987, has been serving more than 83,000 people organised into clusters in 11 districts at the time of the COVID-19 outbreak.
The majority of their clients were either self-employed small producers or daily-waged workers, who have lost their income completely due to the situation of lockdown and/or restrictions of movements.
In consultation with the clients, Berendina Micro Investment Company (BMIC) decided to adjust its operations to suit the situation in favour of their clientele. One such initiative was the introduction of a loan moratorium scheme following directions issued by the Central Bank, even though it was not applicable to the microfinance industry. Under this scheme, a three-month moratorium was provided for requested clients with the option to extend up to six months for severely affected clients. This offer was communicated to the clients through cluster leaders during the lockdown period. A total of 57,413 loan borrowers representing 72 per cent of the total clients acquired this facility and the total outstanding amount of the moratorium was Rs. 2.5 billion. By the end of August 2020, BMIC also waived off loan interest of 4,398 clients who continued to repay their loan instalment despite the pandemic situation, the organisation said in a media release.
Berendina Development Services (BDS), the social responsibility wing of the Berendina, designed the SAHANA/NIRVANAM project allocating Rs. 102 million to support Berendina clients and economically inactive people identified by their client groups. It was one of the largest dry ration distribution and livelihood support initiatives in the island that covered more than 84,000 COVID-19 affected families through 30 branches in the districts – Ampara, Anuradhapura, Badulla, Batticaloa, Kandy, Kegalle, Kilinochchi, Mullaitivu, Nuwara Eliya, Trincomalee and Vavuniya.
Under this assistance, Berendina distributed seeds and plant material such as turmeric, yam, sweet potato, ginger, cassava banana, coconut, Bangkok guava, cashew, papaya, mango, rambutan, cloves, spine gourd, pepper, tea, capsicum chilies and also Bee keeping boxes free of charge among its microfinance clients to rejuvenate their livelihood activities in addition to the financial assistance provided. Clients who were involved in dairy business were provided with CO3 fodder grass for cultivation. This enabled 8041 micro credit clients to be the direct participants in increasing domestic food production.