Microfinance institutions in rural Bangladesh are facing unexpected repayment defaults caused by borrowers losing money through gambling apps. Loan recipients—mostly women—are reportedly handing funds to family members or spouses who spend it on mobile betting.
Loan officers report an uptick in missed payments and reduced community savings. This trend is beginning to destabilize trust in group lending models.
Industry leaders urge coordinated action between financial literacy programs, mobile wallet providers, and local governments to raise awareness of how gambling addiction can undermine rural economic resilience.
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