Bangladesh MFIs achieve 26pc loan growth in 2022-23

Microfinance institutions (MFIs) in Bangladesh have disbursed a total of Tk 2.49 billion in the fiscal year (FY) 2022-2023, marking a substantial 26.41 percent increase compared to the previous fiscal year.

Of the total loan amount, around Tk 1.05 trillion (42 percent) has been distributed as microloans in the microfinance sector in FY 2022-23, according to data disclosed by the Microcredit Regulatory Authority (MRA) at an event in Dhaka on Sunday.

Additionally, the institutions disbursed over Tk 1.24 billion to the agricultural sector, comprising 50 percent of the overall loans distributed.

Microfinance institutions play a vital role in providing economic services nationwide, with a focus on financial inclusion as well as contributions to health, education, higher education scholarships, and disaster management.

Currently, there are 731 MRA-certified institutions operating through nearly 25,000 branches, reaching nearly 40 million marginalised individuals across the country.

In the 2022-23 fiscal year, these MFIs received savings amounting to Tk 900 billion from their clients.

This reflects a comprehensive approach to financial inclusion and highlights the significant impact of microfinance on empowering communities and fostering economic growth in Bangladesh.