Abstract

The goal of this article is to inspect the current status problems and prospects of urban microfinance in Bangladesh This article employs the descriptive research methods based on secondary data This paper Illustrates the present scenario of urban microfinance by using tables graphs and the trend analysis This paper finds that the urban microfinance in Bangladesh has been growing tremendously during the last decades During the 2006-2017 period the number of members within the urban microfinance program has increased by 110 69 Besides the amount of loan amount disbursed in the urban microfinance program has increased by 110 54 during the last four years 2014-2017 Also the rate of increases of the total net savings of the urban microfinance members 373 33 was higher than the rate of increases of the total net savings of the rural microfinance members 152 36 during the 2009-2017 period The loan Interest rate varies in between 15 and 30 With regards to recovering the loan amount 95 of the microfinance institutions MFIs apply the flat interest rate while the remaining 5 of the MFIs use the declining method The loan recovery rate varied from 94 27 to 98 61 per cent during the 2006-2016 period Finally this paper inspires the urban microfinance institutions urban MFIs and recommends to concentrate more on the urban poor people to make them economically as well as socially empowered