Tk 2.49 lakh crore microcredit disbursed in FY23
Staff Reporter :
Microfinance institutions disbursed a total of Tk 2,49,000 crore in loans at the end of June 2023, marking a 30 per cent increase from the previous fiscal year, according to the Microcredit Regulatory Authority (MRA). In FY22, the total loan disbursement was Tk 191,883 crore.
Alongside the increase in loan disbursements, microfinance institutions also saw a robust rise in savings mobilisation, with clients depositing Tk 62,055 crore in FY23, representing a 25.16 per cent increase from FY22.
The total number of loan recipients rose to 31.53 million in June 2023 from 29.74 million in June 2022, according to the latest data released by the microcredit regulator.
As of June 3, 2024, 724 MFIs have been registered with the Microcredit Regulatory Authority (MRA) in Bangladesh. The data also showed that the total number of beneficiaries of MFIs increased to 40.86 million at the end of June 2023 from 38.26 million a year earlier.
The number of MFI branches increased to 25,336 as of June 2023 from 23,343 a year earlier.
Microfinance institutions also achieved a 98 percent loan recovery rate for the loans disbursed to their clients in FY23, according to the regulator’s data.
The data highlighted the active involvement of women in this sector, comprising 91 percent of the loan recipients. Of the total loans, around Tk 105,000 crore, or 42 percent, were distributed as microloans in the microfinance sector in FY23.
On the other hand, the number of MFI employees decreased to 206,000 in June 2023 from 207,000 in June 2022. Microfinance institutions play a vital role in providing financial services nationwide, focusing on financial inclusion, as well as contributing to health, education, higher education scholarships, and disaster management.
Currently, a significant number of small entrepreneurs are producing various products and delivering services with financial support from the MFIs. These products are exported after meeting local demand, according to sources.