EFFECT OF MICROFINANCE ADOPTION ON RURAL HOUSEHOLD INCOME IN SELECTED UPAZILA OF KUSHTIA DISTRICT OF BANGLADESH (original) (raw)
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Zenodo (CERN European Organization for Nuclear Research), 2019
The study is to examine the socio-economic effects of microfinance of Grameen Bank (GB) on borrower households in the study area. Microfinance of Grameen Bank has a contribution on change of socio-economic status, reducing poverty and increase income generating activities. It is to investigate the socio-economic change occurred among them in the reference time of period. The collected data were estimated using statistical techniques. Statistical analyses include mean, Chi-square test, analysis of variance (ANOVA) test and four Likert scales (four point-scales) such as Strongly increase (Strongly Agree), Moderate increase (Agree), Unchanged (Disagree) and Decreased (Strongly Disagree). The total sample size was only 168 borrowers of GB through simple random sampling from eight centers under four branches, and where multi-cluster sampling has been used for this study. The ANOVA test is performed to examine the association between microcredit and socio-economic factors such as education, occupation, average monthly income, savings, value of assets and cultivated land, etc. After taken loan from Grameen Bank (GB), change of average monthly income, savings, average monthly expenditure, occupation of borrowers, education expenditure for children of borrowers, asset value of borrower households are being increased. The respondents showed the level of changes in 16 chosen indicators separately. Participation impact score (PIS) of selected change items (16 items) reveal that how much changes to have occurred among the women borrowers after joining GB. The result of Standardized PIS (SPIS) reveals the overall significant, which is above 70 percent. The results of PIS or SPIS indicate that the highest score among selected 16 items is for improved participation in family decision-making and the lowest score among all is for improvement counting ability. Finally, coverage and schemes of microcredit programmes, lowering interest rate, extending the repayment period, delaying the start-up of instalment are among the main suggestions that can be pursued so as to obtain better outcomes of microcredit activities in the study area and in the whole country as well. In spite of some barrier of microfinance institutions, microcredit has a positive contribution on socio-economic of borrower households in the rural area of Bangladesh.
International Journal of Social Science And Human Research, 2022
Micro-credit was designed to organize poor people's tiny savings into funds that could be accessed by the poor, particularly rural women. Microfinance is a powerful technique for affecting the socioeconomic condition of respondents and their family members to generate more cash for personal purposes. The additional money enables the respondents' families to purchase nutritious food, land, and construction houses, have access to contemporary health care, multiple cultivations, and small business, and send their children abroad as well as to school. The objective of this study is to explore the reasons for the received microcredit and the impact of microfinance on socioeconomic enrichment based on primary and secondary data by using previous studies and direct personal interviews, in-depth interviews through open-ended questionnaires conducted with microcredit receivers from BRAC, Grameen Bank, and ASA as well as field staff respectively at Balunnaghar in Cumilla, Bangladesh in 2021. Both random and Snowball sampling technique was adopted to select respondents. This study highlighted that microfinance has brought a lot of positive changes in respondents' income, family status, and overall socioeconomic condition but somewhere few borrowers were unable to mobilize the credit appropriately; therefore, some bad loans arise. So, some recommendations are given for reducing the misuse of loans and also to be self-reliant.
Asian Journal of Social Sciences and Legal Studies, 2020
The primary purpose of the study is to evaluate the effectiveness of microfinance on household income generation in the south-west region of Bangladesh. A set of statistical tools such as descriptive analysis, t-test, correlation analysis, and log-linear multiple regression models have been used to achieve the objective of the study. It has been found that the difference between household income, expenditure, saving, working hours, and capital is statistical and significant after joining the microfinance program. Also, results from correlation analysis show a positive and meaningful relationship between credit and household monthly income, expenditure, and savings. Besides, the regression analysis confirms that the age of the respondent, family members and loan amount has a positive and statistically significant impact on income generation for the microfinance receiver. The finding of the research is crucial and meaningful to the policymaker to take practical steps in reducing pover...
Bangladesh is a pioneer and home of conceptualizing microfinance program. It has taken so many programs to reduce poverty and bring about socioeconomic changes in the rural community. Since 1993, Muslim Aid UK, Bangladesh (MAB) is working with poor vulnerable people to improve their socioeconomic status through delivering interest-free microfinance in Bangladesh. This study is, therefore, aims to examine the economic impact of MAB microfinance program on borrowers' household income and consumption expenditure. Towards the achievement of its objectives, this study used descriptive and statistical techniques. To assess the impacts, primary data were collected from 95 borrowers from Chittagong district of Bangladesh. The simple random sampling method was followed to select the borrowers'. Multiple Linear Regression model were used to analyze the data. The findings revealed that MAB borrower's income and consumption expenditure increased after receiving the microfinance loan. Based on the results, the findings also revealed that amount of loan, loan sufficiency and religiosity had the most significant effect on income. In case of consumption expenditure, the amount of loan, tenure and loan sufficiency shown the significant effect.
Impact of Microfinance on Poverty Alleviation: A Study in the Southern Part of Bangladesh
Asian Business Review, 2020
Poverty is the incapability of a person to meet his basic need like food, cloth, and shelter. Every country has to face poverty across the world. Bangladesh has also been suffering from poverty. Micro Finance Institutions in Bangladesh are trying to reduce the poverty alleviation over the country. The purpose of this study is to identify the impact of different microfinance services to poverty reduction in Bangladesh. A structured questionnaire was used to collect the data from respondents in Barishal division, Bangladesh, and OLS regression was estimated to find out the impact of microfinance services to the poverty reduction in Bangladesh. Results show that micro-credit mostly influences poverty reduction. Savings, micro-insurance, and training also influence the poverty reduction in Bangladesh. The implication of the study is that microfinance service provisions should be more user-friendly for the customers so that the services can be advanced to the locals of the different regions of Bangladesh for facilitating the rapid economic growth. Financial education may be introduced for a better understanding of microfinance services collection, usage, and for return policy. Policymakers may also provide some guidelines to fight poverty for their rest of life.
IMPACT OF MICROFINANCE ON RURAL POOR: AN EMPIRICAL INVESTIGATION FROM INDIA
This paper examines the impact of microfinance on income and employment in general, and on socially disadvantage group (SC and ST) in particular. The study primarily based on the field survey conducted by the authors in two district of Orissa. Both participants and non-participants are taken into consideration for better understanding of the impact of microfinance. Comparison of member and nonmembers socio-economic condition is reported and it was found that non-participants are the most vulnerable and are at a disadvantage position than their counterparts. Probit-model is applied to examine the household specific factors explaining participation in the programme. It was found that land holding increases the probability of participation, where as SC or ST status of the household reduce the probability. Ordinary Least Square regression analysis was carried out to determine the determinants of household monthly income, and to find the impact of microfinance on income and employment. The result suggests that, land holding, education, and participation has positively related to household income. However, ST/SC enters negatively. Caste of the participants, amount borrowed individually, and monitoring of the by SHPI explained much of the increase/decrease in income and employment. Principally, the study found that ST/SC population participation in the programme is limited and those have joined the programme also received little benefits from the programme. The programme has left behind the poorest section of the society, those who need at most attention. Monitoring of the group activities and providing suitable training facility is critical to materialize the benefits of microfinance
IAEME PUBLICATION, 2021
The objective of this study was to investigate the impact of microfinance on ultra poor in outcomes including, income, health, and schooling of children, food security, housing and women empowerment. A total of 204 respondents were selected randomly including microfinance beneficiaries (MB) and non-beneficiaries (NB). The collected data were analyzed through descriptive statistics using t-test. Findings revealed that, microfinance has positive impact on income, health and education of children. While as there was no significant impact on women empowerment, job creation, and housing of borrower. The major factors hindering poor access to credit were reported to be lack of information, high interest rate, attitude of officials and lack of collateral. The available evidence shows that microfinance programs and policies do well, as well as harm to the livelihoods of poor.
Essays on microfinance: financial and social impacts in rural Bangladesh
Rural credit programs in developing countries are designed to help the poorest of the poor by providing collateral-free loans at a low cost. In order to properly measure the efficacy of these programs, one needs to examine not only the pecuniary benefits of the programs but also the non-pecuniary benefits. The micro-loans are mandated for income-generating purpose such as investing in a micro-enterprise. To elaborate, one way that credit programs can benefit the poor is by providing them opportunities to increase their income. Another way that these programs benefit is by empowering women. The credit programs tend to target poor women, thereby providing them with income-generating opportunities that they otherwise lack. A woman's potential contribution to the household income may increase her intra-household bargaining power and empower her. This may have far-reaching consequences in terms of household investment in children's health and education, as well as a woman's w...
2019
Micro-credit is a powerful tool which contributes significantly for alleviating poverty and improving living standard for sustainable development of the rural area. Several microfinance institutes such as Grameen Bank, BRAC, ASA and Jagoroni Chakro Foundation (JCF) and others are working in Bangladesh. The aim of this study is to investigate the impact of micro credit program to improve the living standards of concerned people in Rajshahi and Natore districts of Bangladesh. The empirical study shows that 78.6% of the respondents are female and only 21.4% are male and most of them are belong to the age group 31-40 and maximum number of the respondent's education level is below primary. Some of the factors that show the improvement of the living standard are increased education enrollment, safe water, hygienic environment, nutrition and adequate food, household assets, income, and savings. After joining this program, about 69% of the respondents increase their saving. And most of ...
Microfinance programs have been designed for the poor people to access the formal financial system easily without any collateral. From the beginning, microfinance programs are trying to reach the poor people to improve their living standard through income generating activities. Following this objective, Rural Development Scheme (RDS) and Muslim Aid Bangladesh (MAB) is working with poor vulnerable people to improve their socioeconomic standard through delivering interest-free microfinance in Bangladesh. This study is, therefore, aims to examine the determinants of microfinance performance in Bangladesh. Towards the achievement of its objective, this study used qualitative techniques. To assess the determinants, primary data were collected from 192 borrowers from Chittagong district of Bangladesh. The quota sampling method was followed to select the clients. The findings revealed that RDS and MAB have been trying to provide the handsome amount of loan, training, to the clients to run their business though the amount of loan and training was not sufficient. Determinants, time duration with microfinance, client's age and education level was found in the acceptable range but there are some issues need to be considered according to client's needs.