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Microcredit firms disbursed Tk 2.85 lakh crore loans in FY23

Published : Sunday, 3 December, 2023 at 12:00 AM  Count : 296

Microfinance organizations, Grameen Bank and other government-owned organizations have collectively disbursed a total of Tk 2,85,757 crore in microcredits by the end of June this year.

Microcredit programmes are typically executed in Bangladesh through various channels, including MRA-licenced MFIs, Grameen Bank and under special initiatives or organizations  under different ministries, as well as through various specialised and private commercial banks.

According to Micro Credit Regulatory Authority (MRA), MRA-licenced MFIs distributed a total of Tk 2,49,302 crore in loans until June 2023, reflecting an increase from Tk 1,91,800 crore in 2022 and Tk 1,51,100 crore in 2021.  Of this, MFIs successfully recovered Tk 2,17,617 crore.

Additionally, Grameen Bank disbursed Tk 24,757 crore, various government departments and organizations provided Tk 8,475 crore and government and non-government banks contributed Tk 3,223 crore by the end of June.

Among the government agencies, Palli Sanchay Bank (PSB) disbursed the highest amount, of Tk 5,214 crore, Bangladesh Rural Development Board (BRDB) Tk 1,645 crore, Palli Daridro Bimochon Foundation (PDBF) Tk 1,058 crore, Small Farmer Development Foundation (SFDF) Tk 284 crore, Department of Youth Development (DYD) Tk 153 crore and Department of Social Services (DSS) disbursed Tk 105 crore.

Under Grihayan fund, Tk 2.5 lakh loan were provided at an interest rate of 5.5 per cent, while a Tk 3,000 crore stimulus package for low-income people was distributed by 169 MFIs under Bangladesh Bank refinance scheme at 9 per cent interest rate.

Microcredit, as per MRA, empowers economically disadvantaged or low-income populations in remote areas by providing collateral-free small capital.

It serves as a means for borrowers to invest in self-employment ventures or projects, contributing to additional income along their regular sources.

The MRA reports a total of 3.15 crore borrowers and 4.08 crore clients under MFIs. Total existing loans to borrowers were Tk 1,50,418 crore at the end of June 2023.

Clients' savings, loans from PKSF, loans from commercial banks, donor funds, cumulative surplus and other funds make up those loans.

Of the total disbursement of Tk 2,49,302 crore, notably 42 per cent or equivalent to Tk 1,05,000 crore, was distributed as microloans, according MRA published report.

A remarkable 91 per cent of loan recipients were women in FY23, showcasing their significant participation.

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