A vast majority of returnee migrant workers cannot apply for reintegration loan, provided by the government for their livelihood plan, even though they need it badly.
Workers said they find it difficult to go through the procedure for applying for the loan at Probashi Kallyan Bank (PKB) because of many strict terms and conditions.
A recent study, conducted by Ovibashi Karmi Unnayan Program (OKUP), showed that about 80 per cent of the returnee workers have so far decided over their economic reintegration plan like sewing, dairy farming and driving auto-rickshaw in the country.
OKUP interviewed 35 workers from Narsingdi, Munshiganj and Charbhadrasan upazila under its survey titled "Migrants' Access to Reintegration Loan: Challenges and Opportunities."
It showed that nearly 23.33 per cent of workers tried to get PKB loans. Of them, 14 per cent have been able to receive the fund.
The workers who did not apply for PKB loans said they would not be able to meet too many terms and conditions which are mandatory for applying for the scheme.
A good number of returnee workers told the FE that they want to start small venture at home, but they have no money.
They went for reintegration loan, provided by the government for Covid-impacted returnee migrant workers. But they failed to get it as they could not meet conditions.
Workers also said they face hassle when they seek information and other services related to PKB loan.
As part of financial reintegration by the government, the Ministry of Expatriates' Welfare and Overseas Employment introduced a loan scheme worth Tk 2.0 billion through PKB in July last year.
The rate of interest on the fund is 4.0 per cent. Workers can apply for loans from Tk 100,000 to Tk 500,000 each.
So far, 650 workers could receive the loan. Almost all of receivers got loan of up to Tk 200,000 each as this limit is collateral free, according to the data available with PKB. Only two workers received Tk 500,000 each from the fund.
Insiders said workers cannot apply for the upper ceiling of the fund due to the condition of collateral.
The government also gave another fund worth Tk 5.0 billion as reintegration loan for all returnee migrant workers. But the rate of interest is 9.0 per cent for male and 7.0 per cent for female.
Considering the higher lending rate, workers are also hardly going for receiving the loan, insiders said.
Expatriates' Welfare and Overseas Employment minister Imran Ahmad at a programme recently expressed frustration over the lower number of recipients of reintegration loan. He also said they are working on how to make the scheme workers-friendly.
However, arrival of the workers is still continuing from different countries. Since March last year, about 400,000 workers came back home jobless from different countries.
Besides, nearly 150,000 workers came home 'on leave' from different countries including Saudi Arabia, Malaysia, Kuwait, Qatar, Oman, Bahrain, United Arab Emirates, Singapore and the Maldives before coronavirus breakout. But they remained stranded at home due to Iqama (work permit) and air ticket related complications.
Arifur Rahman, who came home from Malaysia in February 2020, said as it is uncertain whether he would go back to his workplace, he wants to start a cow fattening farm at home.
Being informed by his neighbours, he went to a PKB branch in his district. But he failed to apply for the fund as he could not fulfill the conditions of collateral guarantor, he said.
Mr Arif said his financial condition was good, but he has no income in the last 11 months.
"I am facing acute crisis of money. My situation is so bad that I kept mortgage my daughter earrings," he added.
The OKUP study said about 74 per cent of the interviewed migrants can barely meet their basic requirements upon return to their hometowns or villages and many of them are yet to settle any livelihood opportunities.
Besides, a staggering 77 per cent of returnees who did not apply for the loan yet will suffer even more unless reintegration loan is made easily accessible to them all, it said.
Shakirul Islam, chairman of OKUP, said the government should adopt workers-friendly loan policy so that vulnerable returnee migrants can benefit from the fund.
It is really difficult to meet the conditions of the loan by the returnee workers. Many of them have no property as they sold it to meet migration cost.
Besides, short grace period and higher rate of interest are the barriers for helpless returnee workers, he added.
"Lastly, I would like to say that the reintegration scheme of Tk 2.0 billion has been provided by the Wage Earners' Welfare Fund (WEWF). The WEWF is created with the contribution of migrant workers. Considering all of these issues, the fund should be easily accessible to the workers," Mr Islam said.
When asked, Md Abnus Jahan, managing director of PKB, said they are trying to make the process flexible. To this effect, they have increased collateral-free ceiling from existing Tk 200,000 to Tk 300,000 recently.
The specialised bank distributed Tk 5.43 billion to about 45,000 migrant workers since its inception in 2011. Now the bank is operating 71 branches across the country.
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