Professional Documents
Culture Documents
A presentation by Arcane
Succession of Learners
Name
Mohammad Fayez Uddin Mohammad Alamgir Hossain Md. Rashel Miah Asma Akter Naznin Fatama Md. Maruf Hasan
ID No.
07882684 07882742 07882746 06651335 07882729 07882758
Topic
The contribution of microfinance for the development of urban poor people in Bangladesh
The word is literally comprised of two words: micro and finance which literally mean small credit; the concept of microfinance goes beyond the provision of small credit to the poor. However many microfinance practices today still focus on microcredit: providing the poor with small credit with the hope of improving their labor productivity and thereby lead to increment in household incomes. The main interest of the study is to understand how households used the credit, and to measure the impact of that credit on household income and their development.
as, the provision of a broad range of financial services to poor, low income households and micro-enterprises usually lacking access to formal financial institutions.
The principal microfinance service providers are usually categorized into four major groups viz. MF-NGOs, specialized institutions, banks and administrative ministries. MF-NGOs hold the largest share of the market, while GB accounts for about 29 percent (till December 2011) of total disbursement.
The large majority of borrowers (86%) are clients of the handful of large organizations: BRAC, the Grameen Bank, ASA and Proshika.
The four institutions combined have over $800 million in outstanding loans and around $380 million in savings. After the big four, the next largest NGO (Swarnivar Bangladesh) has 0.7 million clients and there are only ten NGOs who have more than 100,000 borrowers.
Mohammad Alamgir Hossain, ID: 07882742
Simplify services Offer small initial loans Offer short term loans Localize services, focus on scale Shorten turnaround time Motivate repayment Recognize that the poor do save Charge full-cost interest rates
Md. Rashel Miah, ID: 07882746
Each member deposits BDT 20 per week as savings and pays BDT 20 as membership fees when joining ASA ASA provides 15% loan to the urban poor people.
The constituents of the sector include Grameen Bank, NGOs, Bangladesh Rural Development Board (BRDB) which is a public sector organisation
The Grameen Bank and NGOs are however, the leading actors in this field Total participants in the microfinance programs in Bangladesh stand above 13 million Around 9 million of them are enrolled in NGO programs There are around 15,000 NGOs registered in Bangladesh.
Naznin Fatama, ID: 07882729
The liquidity constraint is the most removed Creating the productivity of household labor Microfinance promises to break the vicious chain of poverty from urban area Self enforcing economic empowerment.. Household resource becomes
Broad Category
Indicators Income
Types of change +
Cause of change Self employment activities Greater access to involvement in employment through the rental market Transport and other non-agri activities support by microcredit wage employment in non-agri sector
Food Security
Economic Impact Wage
Employment
Most of the clients of MFIs are women and most of them just had little education. Most of the clients started their business by taking loan from MFIs. These poor brought about a positive change to their financial condition. Obtaining loans from MFIs is easier than conventional banking. It is not required of collateral to take the loan from MFIs. The loan taking procedure is less complex than that of commercial banks. They cannot compare the interest rates with CB because of lack of education. Microcredit establishes the economic empowerment among the poor. Another impact of MFIs is the creation of employment opportunity. Microfinance contributes to overall financial system.
Md. Maruf Hasan, ID: 07882758
In conclusion it is argued that there is a contribution of microfinance for the development of urban poor people. More importantly the ability of households to begin informal sole micro entrepreneurships should not be assumed to be adequate for the improvement of household income. There is need to create a policy framework to encourage growth in the enterprises as well as the rural economy as a whole through the creation of employment opportunities and an increment in the income output. To achieve such objectives more than one policy intervention may be required.