At present, 746 NGOs and MFIs (Micro Finance Institutions) are operating microcredit services across the country with MRA license. Now, the Microcredit Regulatory Authority (MRA) is going to provide licenses to some of the fresh micro financing institutions, amid the Covid-19 pandemic.
To encourage the micro financing activities’ expansion, the decision to provide new licenses has been decided in the meeting of MRA Management Council.
According to the source, the initiative has been taken for the third time. This time, priorities will be given to those, who are interested in micro financing services to spread information & technology in bordering and remote areas of the country.
The issue has been published through the MRA’s gazette notification. Concerned one can find the detailed information on the MRA website. Eager candidates have to apply via online by 31st March (Wednesday).
MRA will provide probationary licenses to the qualified applicants after verifying the applications.
The associated applicant has to be registered prior to the application, by the conventional law of the country such as; Society Act, Trust Act, Voluntary Society Welfare Ordinance or Company Law,.
Under these acts, the eligible institutions must have the working experience on microfinance scheme, with a minimum Tk 30 lakh disbursement record. The eligible candidates will be provided the probationary license for three years.
After the approval, the minimum number of credit borrowers has to reach 1000, and minimum 1 crore amounting loans have to be distributed within 3 years of license validation. Those able to fulfill the provision will be nominated for the final certification.
MRA was established in 2006. Since the beginning of its journey, the micro finance institutions are bound to require an MRA license. In FY 2006-07, around 4243 financial organizations applied for an MRA license for the first time. Among the total applicants, 758 organizations were selected achieving the license.
In FY 2011-12, around 1212 institutions applied for the second time. Licenses were given to 122 organizations among them. 880 institutions achieved license in two stages. Licenses of 143 institutions were cancelled as they failed to comply with the provision. Now, 746 microfinance institutions are providing their services across the country.