Holiday Post Report: Bimal Chandra Dey, Chief Executive Officer of Mukti Cox’s Bazar, believes Bangladesh’s microfinance sector has been a global success story but must now tackle rising challenges to sustain its impact. In an interview with Holiday Post, he outlined the hurdles and opportunities facing microfinance institutions (MFIs) as they push for financial inclusion and poverty reduction.

The sector’s biggest challenge, he said, is over-indebtedness, with borrowers trapped in cycles of loans from multiple lenders. High interest rates imposed by banks make fundraising costly for MFIs, squeezing their ability to serve low-income clients effectively. External shocks like economic crises and climate disasters further strain operations, while poor digital access limits tech-driven solutions in rural areas.

Government policies have been a double-edged sword. The Microcredit Regulatory Authority (MRA) ensures transparency and fair lending but needs more support to grow the sector by providing technical support and formulation policies to establish MFIs as Micro Finance Bank.

To boost growth, Dey urged reforms: tiered interest rates based on loan size, expanded financial literacy programs, and climate-resilient loan products for farmers. “Digital transformation is non-negotiable,” he stressed, citing mobile money platforms like bKash as game-changers.

Microfinance, he said, is vital for Bangladesh’s 2041 development goals, driving women’s empowerment, job creation, and climate adaptation. But MFIs must innovate—using data analytics for risk assessment, promoting green loans, and integrating business training with credit services.

Mukti Cox’s Bazar’s mission—“To be good and to do good”—focuses on governance and women’s self-reliance. Impact is measured through female participation, repayment rates, and income growth.

Reflecting on his career, Dey recalled how microloans turned rural women into entrepreneurs and tech expanded access in marginalized areas. “Microfinance isn’t just about money—it’s about dignity and resilience,” he said. For Bangladesh to progress, the sector must balance regulation with innovation, ensuring loans lift millions without leaving them buried in debt.