Microcredit disbursement rises by 30pc in FY'23
FE REPORT | Monday, 12 August 2024
Loan disbursement by micro-finance institutions (MFIs) as well as the number of microcredit beneficiaries increased substantially across the country, thanks to a suitable policy and easy access to the loan, according to a latest report.
Though the rate of interest is higher than that of other credits, microcredit disbursements by the registered MFIs increased nearly 30 per cent to Tk 2493.02 billion at the end of June 2023 from Tk 1918.83 billion at the end of June 2022.
The total amount of loan recipients also rose to 31.53 million in June 2023 from 29.74 million in June 2022, according to the latest data released by the microcredit regulator.
Some 724 MFIs have been registered with Microcredit Regulatory Authority (MRA) as of June 03, 2024.
The data also showed that the total number of beneficiaries of MFIs increased to 40.86 million at the end of June 2023 from 38.26 million a year back.
The number of MFI branches increased to 25,336 as of June 2023 from 23,343 a year earlier.
On the other hand, the number of MFIs employees also reduced to 0.206 million in June 2023 from 0.207 million in June 2022.
The number of microcredit beneficiaries has risen mainly due to the policy suitable for the sector, a senior executive of the MRA said.
Besides, easy access to small credit than that of the country's commercial banks has led to a gradual rise in the number of microcredit beneficiaries, he mentioned.
The borrowers are becoming less dependent on banks as the MFIs are expanding their presence across the country, especially in rural areas, promoting financial inclusion by bringing unbanked people under its coverage, he added.
He, however, said many poor families depend on MFIs for funds they require to continue with their small businesses or serve other purposes in rural areas.
Most of the clients, especially women, start their business by taking loans from MFIs, he said, adding that now the clients are able to boost their incomes and provide financial help to their families.
Currently, a good number of small entrepreneurs are making different products and delivering services with financial support from the MFIs. These products are exported after meeting local demand, said another source.