Roles of Microcredit for Poverty Alleviation: A Study of Selected NGOs in Bangladesh

• Nobi, Md. Nur ^[4] ; Ali, Md. Mokshud ^[5] ; Hossain , Sanjida ^[5] ; Rahman, Md. Shamsur ^[1] ; Shohel, Asaduzzaman ^[2] ; Tani, Tani ^[3]
  1. [1] University of Dhaka

     University of Dhaka

     DCC (Kotwali), Bangladés

     
  2. [2] International Islamic University

     International Islamic University

     Pakistán

     
  3. [3] Jagannath University

     Jagannath University

     DCC (Kotwali), Bangladés

     
  4. [4] Hochschule für Technik und Wirtschaft Berlin
  5. [5] Times University Bangladesh

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• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 41, Nº 3, 2023 (Ejemplar dedicado a: Socially Responsible Investment and Sustainable Finance: How can economics – finance research contribute to the sustainable development of the planet?)
• Idioma: inglés
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• Resumen

  • The main purpose of this research is to evaluate microcredit program of selected leading NGOs in Bangladesh. Interviews were conducted with 1000 individuals from the chosen NGOs and MFIs that run microcredit programs in Bangladesh. According to data analysis, people who received loans between 21,000/- and 30,000/- taka had a 6.289-times greater chance of living in poverty than people who received loans between 5,000/- and 30,000/- taka. This loan amount, between 21,000/- and 30,000/- taka, is adequate for any small business. However, a loan of between 5,000/- and 10,000/- taka is too tiny for any type of sustainable business. This amount of financing just serves to boost family consumption and has no impact on the business' ability to change. Significant effects on reducing poverty are hard by many groups in the study. The likelihood of living in poverty rises by 14.3 percent and 21.0 percent, respectively, depending on whether the respondents are members of BURO and ASA. If the respondents in TMSS Bangladesh are worried, there is an enhanced possibility of up to 11.8 percent points in the absence of a change in poverty. The likelihood of respondents experiencing no change in their poverty position is significantly reduced if the respondent is from Great Britain (5.4 percent). The likelihood that respondents will marginally escape poverty rises if they are interested in BURO (8.2%), GB (2.5%), ASA (10.4%), and TMSS (0.2 percent). This survey report and analysis demonstrate that there has been no progress in the possibility of a good shift in poverty. Analyzing to a logit regression analysis, the size of the loan obtained, experience with eradicating poverty, and NGO participation are three key factors that influence how satisfied a user is with a microcredit program. The results demonstrate that many non-governmental organizations (NGOs) have no discernible influence on reducing poverty. It demonstrates that the respondents' experiences of reducing poverty are the same. A respondent's level of poverty may be adjusted if they received enough credit, had good supervision, and used their credit productively. However, research shows that TMSS respondents are 10.92 times more likely than BRAC respondents to experience a reduction in poverty.