Holiday Post: The microcredit program is one of the best programs in Bangladesh for developing the common people's dreams. Microcredit Program has changed the lifestyle of Rural people and upholds the social dignity of poor people. It has also empowered women and they now can raise their voices in planning. Micro-credit institutes are not only supported economically but also to ensure food security and hygiene.  We believe that poor people have smooth access to Micro-credit institutes and even they feel ownership. Having easy access to finance, it has become the best way of getting loans. Micro-credit institutes are not investing in microcredit rather they are financing in businesses and young Entrepreneurs. Once it was only 2000 taka for a starting loan but now it is not less than 20000 taka. The highest ceiling of loan has risen to 25 lac above and sometimes much more. Young Entrepreneurs are interested in taking loans from Micro-credit institutes because it is quite easy and time-consuming. So, the Environment of Micro-credit in Bangladesh is good and enthusiastic. said A.N.M Fazlul Hadi Sabbir,  Executive Director, BFF.

Nowadays Micro-credit institutes are not good enough to function in their programs. We know that Microcredit organizations depend on Bank loans and members' savings for their capital. But recently, the interest rate on bank loans has increased. As a result, Microcredit organizations are suffering much to provide loans to the members. Borrowers are facing many problems in leading their family expanses, Due to inflation. Many of micro-credit institutes functioning across the country. So a mad competition is playing in the field. People are engaged in credit activities like spider nets. Sometimes people get tempted to get loans from more than one organization at the same time. As a result, they are failing to maintain the MRA condition. OTR and PAR are not put in the mark. Duplication of loans is another cause of defaulting. It should be controlled by an iron hand, He said.

On Microcredit policy in Bangladesh, he said, once it was out of control in the Micro-credit regime in Bangladesh.  After the formation of MRA, this sector is now under control and the same rules and policies are applying to all institutes. But some rules and regulations should be imposed in this sector so that small organization can run their activities smoothly. I would like to mention that overlapping loan distribution and more than 10 organizations working in the same community are a burden to keep the PAR &OTR on the right track. A limit should be fixed to operate credit programs in certain areas. Otherwise, small organizations may face threats to survive.  said Sabbir,

Small is beautiful and micro-economy is badly needed to develop our country. We have a lot of population but our resources are limited. With the limited resources, we have to overcome all sorts of challenges. Lots of students are completing their Master's and graduation degrees from universities every year. But we could not provide them with jobs cause of the shortage of vacancies. Considering the issue, our unemployed young people should start entrepreneurship. They could be the job provider. In this regard, Micro-economy could be the pathway to provide them employment.  Micro-credit organizations can form young entrepreneurs' groups and train them in business management, risk management, and business development. After completing the training, they will get certificates and loans from the MFI. In this way, MFI can play a vital role in developing our economy.

As a micro-credit organization, we can’t move without the permission of MRA and we operate our activities under the regulations of MRA. In the free market economy, my policy is to be cluster-based and group entrepreneurs financing with demand-based training. We should also emphasize innovative business and tech-based entrepreneurship. In this regard, the government should make a bridge and international linkage to access the global market.

My special suggestion for the microfinance industry in Bangladesh is to make space for all businesses and assist the smaller ones to cope with the larger ones.  For the sustainability of MFI, the bank loan interest rate should be reduced to less than 9% or Bangladesh Bank will open its door to financing the MFIs.

We are a small organization and working small which is Beauty. Our organization provides loans to poor people, specially village women.

We have a number of groups that are combined by women and they are the leaders of the group. Our loaners have gradually improved their lifestyle and financial stability has been the focus. Our total 1700 members and our portfolio is not big it is about 4 crore taka. We have a good monitoring and reporting mechanism in place. We have also some policies to run the activities smoothly with high satisfaction. We have some national and international collaborations like of ALRD, NGO federation, and nationally we are a member of the Gender and Water Alliance (GWA). Besides ALRD, Islamic Relief Bangladesh, and Bangladesh NGO’s Foundation as a local partner.

I believe that Micro-credit activities could be the best way of development individually and finally will contribute to our national GDP. Said, He also said which is Member of ALRD general body.