Micro credit-Latest picturesque Bangladesh.
Micro credits have both good and bad sides. The real hardcore poor does not have the benefits out of it, the relatively better people can enjoy it. Regarding the Grameen Bank, it has many other subsidiaries at least 54 of them do not give any profit sharing to its member shareholders. Generally speaking micro credit have its impact on three of our socio-economic conditions, viz., hardcore can relieve their pressure, weak village business micro organizations could emancipate, thirdly, social upliftment and organizing of people, mainly women. It is firmly lagging behind in solving health problems. Social safety net is another to help the have-nots in time of trouble.
Every year we need to create 23,00,000 new jobs which is not happening at this moment, industrialization have no other alternatives. Agricultural lands are squeezing against its demand.
Well, let’s see the micro credit scenario in short-
- Lately the micro credit interest rates were up 50-60%, now it is declined (rather forced to decline) to 27%, due to Government intervention. How far it goes with free economy or not is another subject for debating.
- Micro credits are given in 126 different sectors.
It’s so huge number that become uncontrollable with good governance, hence, some experts opine poor governance is much more worse than no governance at all, in other words, rather stop it. This is the governance that destroyed Share market in Bangladesh, and the Wall Street too. This micro credit lending market should and must not be politically motivated and influenced, which is now.
- At the time of issuing micro credits, institutions usually deducted 5% at source immediately of granting. Now it is not done immediately, rather 15 days breathing space is given to pay its first installment.
- At present Tk. 22,000,000000/- loans are lying at the hand of Debtors.
- If classified, 80% are basic micro credits, and 20% is agro-fishing credits.
- The micro credit beneficiaries are numbered as 3,61,00,000.
- Among those credit offered to 3,23,00,000.
- There are 19,227 Micro-credit organizations
- Only 8% households in Bangladesh can have the access to generic commercial banking services.
- Micro credit lenders spend 23% of its interests earned for administrative expenses. This is not a commercial institution, rather a social firm too.
So, more pragmatic research work and political commitment is needed in order to have a synchronized micro credit system in Bangladesh. At present all the organizations are actually doing credit businesses, to have eyewash, keeping some social activities. Profiteering is the main objective so far!