Nearly half of the population in Bangladesh work in the poor agricultural sector where they have traditionally been excluded from accessing credit facilities that could improve their livelihoods.
To help farmers lift themselves out of poverty, USAID’s Development Credit Authority has partnered with Bangladeshi banks to provide customized financing options that fit the needs of local communities. Here are Benefits of Small Loans in Bangladesh.
3 Benefits of Small Loans in Bangladesh
- Bank loans give farmers the opportunity to become self-sufficient. Many poor farmers lack the resources to invest in the land they work on and often spend a significant portion of their income on rent or lease agreements. Through credit facilities, small farmers can purchase the land they work on providing them with stability and opportunities for growth.
- Some farmers have used loans to diversify or increase their crop production or to purchase livestock. Through loans, some workers have even been able to make the switch from being a laborer on someone else’s farm to developing a farm of their own. Each small investment that farmers are able to make moves them one step closer to economic stability.
- Entrepreneurs have the option to expand their businesses through bank loans. One of USAID’s success stories is of a man who had run a carp farm for 16 years. His business was well-established but in order to expand he required a loan, which he received through the USAID program. Farmers can increase their livelihoods when they have more land, because they can cultivate more crops or raise more livestock.
The availability of loans in Bangladesh that are customized for small borrowers will go a long way to benefit farmers, their families and local communities.
– Emily Milakovic