Microfinance Continues to Yield Better Results for the Poor

Also available in Bangla

More rural and urban poor are now accessing microfinance services to improve their lives, thanks to the Government’s two initiatives, supported by the World Bank.

The Government-led Microfinance II project has expanded microfinance services to 5.9 million borrowers, of which 3.7 million are new, against a target of 1.2 million. About 90% of these borrowers are women.  Nearly half a million urban poor have also accessed these services, nearly double against the target, while more than 65,000 graduate borrowers opted for microenterprise loans, which is three times higher than the target.

Another World Bank-supported Financial Services for the Poor Project raised income of about 55 per cent from less than 50 cents a day to more than 50 cents a day.

Palli Karma Shahayak Foundation (PKSF), an autonomous body that provides funds to microcredit institutes, is implementing both these projects. A World Bank mission recently visited the fields and saw success stories of final end-users of PKSF’s microfinance programs, such as rural and urban microcredit, micro enterprise and microcredit for ultra poor. PKSF will also administer another World Bank-supported microcredit program for rickshaw pullers, affected by the ban on rickshaws in some Dhaka roads, under the Additional Financing for Microfinance II.now under consideration by the World Bank.

 

Contacts:

Rezwan-ul-Alam (8802) 815-9015, Ext 4242,      E-mail:  salam3@worldbank.org
for more information on the World Bank in Bangladesh, please visit : www.worldbank.org.bd & www.worldbank.org