Addressing the problems of hardcore poor through micro-credit
Microfinance does positive change in poor women’s life, revealed by various empirical studies. It is well accepted as a poverty reduction tool by many countries all over the world, but it is not a panacea for poverty reduction. Moreover, it is not adequately suitable for all kinds of poor. T he extreme poor have not been adequately reached by existing microfinance institutions. It is not only because of their incapability but also for the nature of financial products that are offered for them. It is also related to the perception of extreme poor about microfinance. The objectives of this article are to illustrate the facts and figures about the targeting methodologies used in Bangladesh by the Microfinance Institutes (MFIs) and other development organizations, analyze the financial product that is offered, narrate cultural clientele relationship of MFIs, and finally, articulate some challenges which need to be reviewed for designing any further financial products for the extreme poor. ...