About Us & Programs — Society Development Committee (SDC)

A-Card: Smallholders’ Access to Micro Finance through Bank

The "A-Card" (Agricultural Card) initiative was a pioneering digital financial inclusion project implemented by the Society Development Committee (SDC) in partnership with Bank Asia Ltd. and supported by USAID through the Agricultural Extension Support Activity (AESA). Operating across rural unions in Faridpur District, this innovative project integrated commercial banking services, MFI networks, and local agricultural input retailers into a unified digital ecosystem.

Project Rationale & The Challenge

In rural Bangladesh, 80% of smallholders lack access to formal bank credit and rely on traditional MFIs or informal moneylenders. Conventional microcredit presents two major hurdles:

Exorbitant Capital Costs: Standard MFI loans carry interest rates averaging 25% to 31%, severely eroding agricultural profits.
Mismatched Repayment Cycles: Mandatory weekly installments do not align with seasonal harvest cash flows.

The A-Card Solution: Introduces formal bank loans at a 10% flat interest rate with a 6-month flexible payback period, aligning repayments directly with crop harvesting schedules.

Goal & Key Objectives

Goal: To transition unbanked smallholder farmers into formal digital banking systems for agricultural lending, lowering input costs and accelerating household economic growth.

Affordable Agri-Credit: Offer formal bank credit at a 10% flat interest rate to reduce capital costs.
Crop-Synchronized Terms: Provide a 6-month grace period matching crop cycles.
Digital Ecosystems: Equip local input retailers with biometric NFC PoS terminals for cashless transactions.
Empower Female Smallholders: Direct targeted financial outreach, ensuring 80% female participation.

Key Innovations & Technologies

NFC Digital Credit Card: Issued microchip-enabled cards for seamless transactions at local input shops.
Biometric Authentication: Integrated fingerprint verification to ensure secure access by intended farmers.
Bank-MFI-Retailer Ecosystem: Connected Bank Asia, SDC agent network, and local agro-retailers into a unified digital platform.

Key Impact & Achievements

60%+ Cost Reduction: Cut interest rates from 25–31% down to 10%, maximizing farm profits.
Timely Input Procurement: Enabled farmers to buy certified seeds and fertilizers on credit during vital planting periods.
Women's Economic Inclusion: Empowered 800 female farmers with direct ownership of digital credit accounts.

Sustainable FinTech Model

Established a scalable, bankable partnership model for agricultural micro-lending across rural Bangladesh: