What’s in Store for MFIs Amid the Pandemic?
The microfinance institutions (MFIs) in Bangladesh are facing a cash flow crisis amid the deadly Covid-19 pandemic. And as time passes by and the situation gets worse, things aren’t looking too bright for the MFIs in the future too.
The MFIs did not collect loan installments from their clients for the last one and half months as the government halted nationwide operations.
Besides, the rural people – who make up the majority of the clientele of these institutions – did not get loans during that period despite a huge demand, said insider sources.
Most of the mid and small levels of NGO-MFIs are already facing hardships and difficulties in paying full salaries to their staff last month.
Under the situation, the Microcredit Regulatory Authority (MRA) issued a circular on Saturday instructing MFIs to operate on a limited scale until further notice.
During the limited operation, microfinance institutions can distribute relief, pay back deposits, and provide loans from the stimulus package of Tk3,000 crore following proper health safety measures.
But the MFIs’ representatives said some conditions mentioned in the MRA circular would be a hurdle against smooth operation.
Presently, there are 758 MRA certified MFIs across the country.
BRAC , which is one of the leading microfinance institutions, has around 60 lakhs members and 32,000 staff. The organization disbursed $5.09 billion in loans across Bangladesh last year – an increase of 21 percent from 2018.
So what to do in a situation like this? Southtech’s Ascend Financials is just the perfect solutions for MFIs currently if you are looking to sustain your MFI post-COVID-19 pandemic.
Here are a few benefits of AFS that can help your MFI in this time of crisis:
Ascend Financials is here to help!
Wanna know in detail about Ascend Financials?
Allows users to buy and sell foreign currency as per the organization’s currency rate setup. This also generates collection and disbursement sheets and updates batch-wise data for Microfinance organizations. Processes cash and cheques deposits under a single transaction.
LOANS AND ADVANCES
Supports all types of term and continuous loans. Supports different repayment methods for term loans including one-time payment loans. Customize interest rates by variable or fixed interest rates for individual customers. Restructure and reschedule loans by customer or group
Allows setting up different types of contacts (e.g., guarantors and nominees) and customers (e.g. individual, partnership, group, and corporate customers). Creates a new field dynamically if necessary for KYC (Know Your Customer). Sets up customer management by branch, center, group and/or group member