Bangladesh is often cited as a crucible of microfinance possibilities. With regular
innovations in products, processes, and their continuous assessments, microfinance
in Bangladesh has managed to reach millions of poor and vulnerable non-poor
households. All the major microfinance institutions (MFIs) are geared toward
achieving social outcomes, while maintaining financial performance. In keeping
the balance between the two bottom lines, a concern of excluding the extreme
poor1
in microfinance has emerged. Based on the existing evidence of the extent
and the quality of microfinance participation by the extreme poor in Bangladesh,
we argue that a mix of specialized packages is required to serve specific sections
of the extreme poor.