The number of microcredit beneficiaries has risen significantly across the country although the rate of interest on the loan is higher than other credits.
The total number of loan recipients increased to 24.85 million in June 2017 from 23.11 million in June 2016, according to the latest data released by the microcredit regulator last week.
The data also showed that the total number of members of micro-finance institutions (MFIs) jumped to 29.9 million at the end of June 2017 from 27.58 million a year back.
The number of microcredit beneficiaries has risen mainly due to government's good policy for the sector, a source in the Microcredit Regulatory Authority (MRA) said.
Besides, easy access to small credit than that of the country's commercial banks has also led to a gradual rise in the number of microcredit beneficiaries, he mentioned.
The borrowers are becoming less dependent on banks as the MFIs are expanding their presence across the country, especially in rural areas, helping the government in enhancing financial inclusion by bringing unbanked people under its coverage, he added.
He, however, said many poor families depend on MFIs for funds they require for continuing with their small business or for other purposes in the rural areas.
Most of the clients especially women start their business by taking loans from MFIs and not from other sources, he said, adding that now the clients are able to boost their incomes and can provide financial help to their families.
Currently, a good number of small entrepreneurs are making different products and delivering services with the financing by MFIs. These products are exported after meeting the local demand, another source said.
The number of MFI branches increased to 17,120 as of June 2017 from 16,204 a year earlier. On the other hand, the number of MFI employees also rose to 139,526 in June 2017 from 120,335 in June 2016.
Currently, 702 MFIs are registered with the MRA and 109 got licences from the authority on a temporary basis until November last.
Microcredit disbursement by registered microfinance institutions stood at Tk 1,045.78 billion at the end of June 2017. It was Tk 782.67 billion at the end of June 2016.
Despite repeated attempts over phone, Executive Vice-chairman of MRA Amalendu Mukherjee could not be contacted for his comment in this regard.
