The philanthropic arm of the Citigroup and the sister concern of the Grameen Bank yesterday launched the microcredit programme styled "Project Dignity-Honourable Opportunities for the Poorest", offering interest-free loans to the beggars.

The Citigroup Foundation will give $250,000 to the Grameen Trust for the three-year project and the latter will implement the project through its partner network in the country.

Under the project, which is to begin within two months, the Grameen Trust will give credits up to Tk 3,000 to 2,500 beggars across the country.

The beggars will also be provided with basic literacy and financial education, assistance to set up income generating activities like processing and manufacturing food, selling fruits, vegetables and clothes, and raising livestock.

Besides, the beggars will be brought under an insurance coverage so that their family gets money for immediate expenses following the death of any credit receiver. The outstanding loans will also be waived after the death of the receiver.

The programme will create an opportunity and present an alternative to begging as it aims to provide financial services to the beggars to help them find "a dignified way of living in the society", said Mamun Rashid, country officer of Citigroup for Bangladesh.

If the project can achieve its ultimate aim, the Citigroup will grant more funds in future, Rashid said at a press briefing yesterday, adding, "Even we may replicate the project in other countries."

Referring to Grameen's currently running "Struggling Members Project", Prof HI Latifee, managing director of the Grameen Trust, said nearly 500 beggars of its 70,000 listed members have given up begging.

He said there are over 3 lakh beggars across the country and the Grameen Trust wants to bring them to a dignified way of living.

Lamiya Morshed, director (development) of the Grameen Trust, was also present at the briefing.