Impacts of micro-finance program on the poor: A comparative study between Grameen bank and ASA in some selected areas of Bangladesh. (original) (raw)
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The Grameen Bank (GB), BRAC and ASA in Bangladesh have developed a successful model of reaching credit to resource poor households that are generally bypassed by Government financial institutions. The article is mainly the comparison of the micro-finance program among the Grameen Bank, BRAC and ASA in Bangladesh. It includes the observations, general overview of micro-finance in Bangladesh. The comparison of the key indicators of microfinance services in Bangladesh. This paper includes some recommendations for the improvement of micro-finance programs in Bangladesh.
Journal of Social and Development Sciences
Microcredit is the most effective and successful way to let the poor having access to credit. Research to study its impact on alleviating poverty among the poor is numerous. However, unlike others, our study examines the effectiveness of Grameen Bank and BRAC, the two major micro-financers in alleviating poverty among the most disadvantaged people in Bangladesh. Hitherto, a study of this nature in which two Bangladesh's micro-financers operating in four districts are surveyed and appraised side by side is hardly at one's disposal. As such, this study can be considered as pioneering in its attempt. Our study has revealed the followings: (i) the poor are the direct beneficiary of the existing micro-finance institutions in Bangladesh. Nevertheless, some of them, especially those who have accounts in both banks, are having problem to repay the loans. Therefore, a mechanism has to be devised to limit each person to enjoy one loan at a time. In addition, a high percentage of the poor in Bangladesh is looking forward to making loans from interest-free banks; and, (ii) the services rendered by both micro-financers to the poor are still no better than the conventional banks. In fact, more than 50.0 per cent of the respondents have shown their dissatisfaction with the services extended to them. To address this problem, it is highly recommended for both micro financers to improve their services by way of making it mandatory for their staff to undergo relevant training programs.
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.
Microfinance Institutions and the Core Poor in Bangladesh: A Review of Their Operations
This paper presents the findings of a study that investigated the impact of Microfinance Institutions in Bangladesh on the core poor i.e. those living on less than $1USD/day and the correlation between the presence of these institutions and poverty in the five Divisions that were examined in the country. Bangladesh is one of the most populous countries in the world with a high level of poverty. This study looked into the operations of these Microfinance Institutions between 1995 and 2005 to establish the correlation between their presence and the poverty level in the locations where they have a strong presence and a weak presence. The study looked into the efforts of Microfinance institutions in poverty alleviation to see if they focused solely on the poor or also catered to the challenges of the core (extremely) poor people that had no valuable possessions or collaterals to obtain loans from them in addition to examining the support of the top three Microfinance Institutions for the vulnerable especially poor women in terms of empowerment in the period under review. This paper concludes with implications of the presence of microfinance institutions for poverty reduction in a geographical location and recommendations for further research.
2016
This paper presents the findings of a study that investigated the impact of Microfinance Institutions in Bangladesh on the core poor i.e. those living on less than $1USD/day and the correlation between the presence of these institutions and poverty in the five Divisions that were examined in the country. Bangladesh is one of the most populous countries in the world with a high level of poverty. This study looked into the operations of these Microfinance Institutions between 1995 and 2005 to establish the correlation between their presence and the poverty level in the locations where they have a strong presence and a weak presence. The study looked into the efforts of Microfinance institutions in poverty alleviation to see if they focused solely on the poor or also catered to the challenges of the core (extremely) poor people that had no valuable possessions or collaterals to obtain loans from them in addition to examining the support of the top three Microfinance Institutions for th...
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.
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.
Contribution of Micro Finance on Poverty Alleviation in Bangladesh
2019
Poverty exists through the world as a curse and a big trouble in the way of development. When people deprived of their basic needs such as food, cloth, shelter, education, treatment and so on is termed as poverty .This paper is to examine empirically the impact of micro-credit on poverty alleviation in Bangladesh. The regular growth of the micro finance concerned parties has been promoted not only by market forces but also by conscious actions of national governments,Non-Governmental Organizations (NGOs) and the donors who view microfinance as an effective tool for eradicating poverty. This paper argues that microfinance can be considered as an important element for an effective poverty reduction strategy especially in rural areas. This study is developed by descriptive analysis based on secondary data. After the analysis of collected data and information, it shows evidence that practically microcredit can be considered as an effective tool for poverty reduction in developing countr...