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Microfinance institutions recovered 98% loans in FY23

BSS . Dhaka
19 Nov 2023 19:36:12 | Update: 19 Nov 2023 20:18:03
Microfinance institutions recovered 98% loans in FY23
— Representational Photo

Bangladeshi microfinance institutions (MFIs) have recovered 98 per cent of the loans distributed to their clients.

According to a report of the Micro Credit Regulatory Authority (MRA), MFIs disbursed a total of Tk 249,000 crore in loans during the fiscal year 2022-23 (FY23).

Of this, Tk 105,000 crore, representing 42 per cent of the total, was distributed as microloans.

The institutions allocated Tk 124,000 crore to the agricultural and microloan sector, accounting for 50 per cent of the total loans distributed.

Microfinance institutions in Bangladesh provide not only financial services across the country but also contribute to health, education, higher education scholarships, and disaster management.

Currently, there are 731 institutions certified by MRA, operating through approximately 25,000 branches.

These institutions offer various social development services alongside financial services to nearly 40 million marginalised people in the country.

During the 2022-23 fiscal year, MFIs accepted savings amounting to Tk 90,000 crore from their clients.

The total amount of loans distributed by these institutions was Tk 249,000 crore, which is 26.41 per cent higher than in the 2021-22 fiscal year.