Microfinance does great good for Bangladesh economy through lifting millions of people out of poverty. Economist and experts always mention the potentials of microfinance in developing economies for fighting against poverty and vulnerability. It is a cost-effective tool for financial inclusion of marginal communities through micro loans and creative initiatives. The history of microfinance in Bangladesh began with the story of famine in 1974. Grameen Bank is the pioneer institution of microfinance in Bangladesh but other NGOs like BRAC, ASA, BURO etc. and government has pivotal role to contribute for a far-reaching impact on the nation. The inclusion of marginalized into conventional banking system in comparison to traditional moneylenders had significant positive effects on sectors like agriculture. The In Microcredit Regulatory Authority (MRA) is an independent organization which holds the exclusive mandate for overseeing the microfinance sector in Bangladesh.
Although there are critics of temporary success and high interest rate, IFPRI stated that microfinance is a proven concept in the context of Bangladesh for generating income and reducing poverty at greater scale over the two decades. In recent times, the microfinance institutions are well-established and has a great number of members and funding sources. They connect with a growing number of vulnerable communities with a source of savings and insurance, microenterprises, and productive employment. Microfinance institutions had a traditional goal of expanding non-farm activities but aiding farming as well. They are usually committed to diversifying borrowers’ economic activities, reducing reliance on wage income, producing significant positive effects for women and marginal farmers.
In Bangladesh, women gets access to capital which removes significant barrier for their entrepreneurial establishment as microfinance attracts them. It provides small loans, known as microcredit, to women entrepreneurs but enables them to start or expand their businesses, invest in income-generating activities, and improve their household's economic well-being. There is also an opportunity of group lending structure of microfinance which achieve more excellent financial stability. Women in Banmgladesh are also beneficial in terms of being decision makers in family crisis. It also provides the scopes creating new ideas, skills, and opportunities for personal and professional growth of women in Bangladesh. Thus, microfinance is a strong approach of empowering women in Bangladesh and thereby, achieving economic development from the botom line of the society.
FAQ:
What are main listed microfinance institutions in Bangladesh?
There are many institutions are providing microcredit to the people of Bangladesh. A list of microfinance institutions in Bangladesh can be found by clicking on the following link: https://mra.gov.bd/site/page/64fe5eb8-64fc-4b0d-a788-75a9fe702b58/List-of-Licensed-MFIs
Who are the microfinance NGOs in Bangladesh
There are around 1500 Non- Governmental Organizations (NGO) like BRAC, Proshika, ASA, BURO-Tangail, BEES, CODEC, SUS, TMSS, Action- Aid etc. 3) Commercial and Specialized banks like Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB).
What are the top 10 Microfinance institutions in Bangladesh?
BRAC, ASA, BURO Bangladesh, Thengamara Mohila Sobuj Sangha (TMSS), Grameen Bank, Proshika, UDDIPAN, BEES, CODEC and SUS are top 10 microfinance insitutions in Bangladesh.
What is the process of microfinance loan in Bangladesh?
The process of getting micro loans, you must pass through various stages or events from the moment it is given till the time it is repaid. The processing and steps can be found at the link: https://mof.gov.bd/site/page/7a0d1f20-0197-49e2-85ef-e95c36e09992/Loan-Sanction-Process