Small NGOs against cut in microfinance service charge

Small grass root micro finance institutions (MFI) and non-government organisation (NGO) called on government to halt the process of further reduction of micro finance service charge, a press statement said.

They said the service charge will threaten to the existence of 505 such organisations who constitute 77 per cent of the sector. There are 659 MFIs NGOs in view of MRA (Micro Finance Regulatory Authority) of Bangladesh Bank, the statement added.

Nine small grass root MFIs and NGOs made the urged at a press conference at the National Press Club Dhaka in the capital yesterday.

 The press conference was moderated by Atiqun Nabi INAFI (International Network of Alternative Financial Institutions).

COAST Organiser Tarik Sayed Harun mentioned that the MF service charge is lower in other countries in South Asia which is only 27 per cent.    

Surplus rate of grass root MFIs is only 9.8 per cent while it is around 46 per cent of the big MFI NGOs, he added.

Awal of CDF said, that these grass root MFI NGOs has little access in bank and PKSF fund, due to different conditions, so further reduction will fall them in extinctions, he also said that interest rate is not problem in Bangladesh, it is the easy access is the issue still.

Small NGOs against cut in microfinance service charge

Small grass root micro finance institutions (MFI) and non-government organisation (NGO) called on government to halt the process of further reduction of micro finance service charge, a press statement said. They said the service charge will threaten to the existence of 505 such organisations who constitute 77 per cent of the sector. There are 659 MFIs NGOs in view of MRA (Micro Finance Regulatory Authority) of Bangladesh Bank, the statement added. Nine small grass root MFIs and NGOs made the urged at a press conference at the National Press Club Dhaka in the capital yesterday. The press conference was moderated by Atiqun Nabi INAFI (International Network of Alternative Financial Institutions). COAST Organiser Tarik Sayed Harun mentioned that the MF service charge is lower in other countries in South Asia which is only 27 per cent. Surplus rate of grass root MFIs is only 9.8 per cent while it is around 46 per cent of the big MFI NGOs, he added. Awal of CDF said, that these grass root MFI NGOs has little access in bank and PKSF fund, due to different conditions, so further reduction will fall them in extinctions, he also said that interest rate is not problem in Bangladesh, it is the easy access is the issue still.