Finance Minister Abul Maal Abdul Muhith on Tuesday said it is difficult for the microcredit receivers to make profit taking loan with 27 percent service charge.
“The financial service charge of the microcredit institutions is still high. The loan receivers face difficulties to bear the charge. It’s difficult for them to make margin on the microcredit with 27 percent service charge,” he said.
The Finance Minister was addressing a seminar titled ‘Access to Financial Services in Bangladesh’ in the city.
Institute of Microfinance (InM) arranged the seminar as part of its two-day national convention on Inclusive Finance in Bangladesh that began on Tuesday at Bangabandhu International Conference Centre.
The Finance Minister said the access to financial services has not reached the satisfactory level yet, but the scenario has improved significantly. All but 20 percent people now have access to financial services.
BRAC University Professor Dr Mahbub Hossain also spoke at the seminar, presided over by InM Chairman Dr Qazi Kholiquzzaman Ahmed.
Dr Kholiquzzaman said the majority cannot exploit their potentials and talents for lack of credit. “If they can be provided with microcredit, it’ll be possible to develop the country alongside empowering the poor.”
He also emphasised development of education, health and training to empower the poor. “Microfinance is not enough to achieve the main goal of improving lifestyle of the poor community. We need to focus on education, health and training alongside financing.”
InM Executive Director MA Baqui Khalily presented the findings of a survey on access to financial services in Bangladesh.
In his survey, he said, some 88 percent families had the access to the financial services of bank or microcredit institutions or informal sector in the country in 2014. But the access to credit is still very low – only 53.96 percent, slight down from 54.12 percent in 2010.
The study shows that 25 percent of labourers, 16 percent of self-employed and 20 percent of service holders and professionals still remain out of the financial service facility.
Dr Khalily said the access to credit for the poor people is lower than that for the rich. “If we want an inclusive growth, we’ll have to ensure inclusive finance.”
Source: UNB
