Microlenders urged to fix reasonable interest rates
Bangladesh Bank Governor Dr Atiur Rahman yesterday called upon microfinance institutions (MFIs) to determine interest rate at reasonable level through a transparent process.
“I don't expect you to follow a complex methodology to fix interest rates,” he told the launch of MIS (Management Information System) and office automation of Microcredit Regulatory Authority (MRA) at the NSC auditorium in Dhaka.
Rahman also asked MFIs to offer appropriate interest rates against deposits of poor savers and ensure that they get back their deposits when they need.
Rahman, also the MRA chairman, made the call citing that corrupt practices by a few MFIs have created a negative impression among a section of people about the sector, although microcredit operations have helped generate employment of the poor.
He hoped that the use of information technology would enhance efficiency of MRA, a body established in August 2006 to monitor and supervise micro-finance operations of nongovernmental organisations in Bangladesh.
Managing Director of Palli Karma Sahayak Foundation (PKSF) Dr Quazi Mesbahuddin Ahmed said there is a negative perception about interest rate charged by the MFIs.
“We should have a transparent service charge,” he said, stressing the need for finding put effective rate of interests charged by the MFIs.
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