Holiday Post: Microcredit programs have proven to be a cornerstone for poverty alleviation in Bangladesh, according to Sumit Saha, Executive Director (ED)of BRAS, a prominent advocate of microfinance. In an exclusive interview with Holiday Post, the ED shared his insights on the pivotal role these initiatives play in improving the socio-economic conditions of underserved communities. Since 1999, his organization has focused on reducing poverty through employment creation, making a substantial impact on the lives of those who often lack access to traditional financial institutions.

Mr Saha emphasized that microcredit is indispensable for managing the economic activities of the country. He believes these small loans stimulate the micro-economy, which, in turn, supports the basic functions of daily life for millions of people. According to him, the development of Bangladesh’s economy is directly tied to the success of such initiatives, as they empower individuals to become financially self-reliant. By providing loans that larger financial institutions typically overlook, microcredit programs enable the poor to participate actively in the economic sphere.

However, Saha was candid about the challenges associated with running microcredit operations. He noted that the process of collecting loan installments is a significant hurdle. Weekly meetings with borrowers are a key strategy for ensuring repayment, but the execution of these strategies is often complex and resource-intensive. Despite these challenges, the growing demand for microfinance underscores its importance in the country’s economic fabric.

The BRAS ED also highlighted the competitive nature of Bangladesh’s free-market economy, where survival depends on delivering superior service. He observed that microfinance institutions must continuously improve their offerings to stay ahead in this competitive landscape. For Bangladesh, where micro-economy and microfinance are closely intertwined, providing the best services ensures long-term sustainability and growth.

Another critical aspect of his organization’s mission is the empowerment of women. Ed explained how they ensure that borrowers are guided on the proper use of loans, helping them improve their financial standing and establish sustainable enterprises. By addressing poverty and promoting gender equality, these initiatives create a ripple effect that benefits entire communities.

Saha underscored the transformative potential of microcredit programs in driving economic development and uplifting lives. For Bangladesh, he argued, there is no alternative to fostering self-reliance through these financial tools.