Pins in the Shoes of Microfinance

Abstract

This note critically discusses the possible endogenous problems that microfinance sector in Bangladesh should seriously take into account. It also draws possible explanations and/or consequences of these factors. The broad understanding is that the sector should emphasize credit plus programs, skill development of borrowers, strong monitoring, product diversification, microenterprise for graduated members and micro-insurance to withstand shocks. For extreme poor, safety-net programs are better option than microfinance.