The Proliferation of the Urban Microfinance and its Problems and Prospects in Bangladesh

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Basharat Hossain
Basharat Hossain
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Dr. Syed Naimul Wadood
Dr. Syed Naimul Wadood

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The Proliferation of the Urban Microfinance and its Problems and Prospects in Bangladesh

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Abstract

The goal of this article is to inspect the current status, problems and, prospects of urban microfinance in Bangladesh. This article employs the descriptive research methods based on secondary data. This paper Illustrates the present scenario of urban microfinance by using tables, graphs and the trend analysis. This paper finds that the urban microfinance in Bangladesh has been growing tremendously during the last decades. During the 2006-2017 period, the number of members within the urban microfinance program has increased by 110.69%. Besides the amount of loan amount disbursed in the urban microfinance program has increased by 110.54 % during the last four years (2014)(2015)(2016)(2017). Also, the rate of increases of the total net savings of the urban microfinance members (373.33%) was higher than the rate of increases of the total net savings of the rural microfinance members (152.36%) during the 2009-2017 period. The loan Interest rate varies in between 15% and 30%. With regards to recovering the loan amount, 95% of the microfinance institutions (MFIs) apply the flat interest rate while the remaining 5% of the MFIs use the declining method.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Basharat Hossain. 2018. \u201cThe Proliferation of the Urban Microfinance and its Problems and Prospects in Bangladesh\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 18 (GJHSS Volume 18 Issue E7): .

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GJHSS Volume 18 Issue E7
Pg. 59- 60
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 140299
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v1.2

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October 8, 2018

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en
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The goal of this article is to inspect the current status, problems and, prospects of urban microfinance in Bangladesh. This article employs the descriptive research methods based on secondary data. This paper Illustrates the present scenario of urban microfinance by using tables, graphs and the trend analysis. This paper finds that the urban microfinance in Bangladesh has been growing tremendously during the last decades. During the 2006-2017 period, the number of members within the urban microfinance program has increased by 110.69%. Besides the amount of loan amount disbursed in the urban microfinance program has increased by 110.54 % during the last four years (2014)(2015)(2016)(2017). Also, the rate of increases of the total net savings of the urban microfinance members (373.33%) was higher than the rate of increases of the total net savings of the rural microfinance members (152.36%) during the 2009-2017 period. The loan Interest rate varies in between 15% and 30%. With regards to recovering the loan amount, 95% of the microfinance institutions (MFIs) apply the flat interest rate while the remaining 5% of the MFIs use the declining method.

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The Proliferation of the Urban Microfinance and its Problems and Prospects in Bangladesh

Basharat Hossain
Basharat Hossain
Dr. Syed Naimul Wadood
Dr. Syed Naimul Wadood

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