The role of micro credit in life status improvement process of rural poor people in Bangladesh
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Bangladesh is a developing country located in the southern part of Asia. Almost eighty percent of the total population of Bangladesh lives in rural areas and most of them are poor. These poor people are not qualified to get loan facilities from the formal financial sector due to the collateral requirements. And informal financial sector also make them unattractive due to their tendency of higher profit making. Muhammad Yunus and Grameen Bank jointly awarded Nobel Peace Prize 2006 for the creation of innovative credit idea called “micro credit” for the poor people who are ignored both from the formal and informal financial sector. Micro credit has been introduced in Bangladesh in 1976 that allows the poor people to get small amount capital as loan without collateral for starting self income generating activities with the objective of alleviate their poverty level and gradually improve their life status.
The purpose of this study is to explore the role of micro credit in rural poor people daily life status improvement process in rural areas in Bangladesh. This study investigates the role of micro on life status improvement process of these poor borrowers.
The qualitative method has been chosen for this study which is implemented in the form of interview approach. Empirical data has been collected from the Grameen Bank borrowers and its official in Bangladesh.
This study tried to cover how micro credit allows the poor people in financial access, how can affect their income level by starting self income generating activities, asset holdings capacity, basic needs, living standard, poverty level and finally on their life status. This study also covers how social welfare and other services offered by the micro finance institutions affect the poor people’s life status.
Based on the empirical findings, this study suggests that micro credit has positive impact on borrowers’ income level, asset holdings capacity, basic needs, living standard and their poverty level. Social welfare services can increase human capital skills, personal awareness level of the poor borrowers. And finally all these things gradually improve the daily life status of these borrowers.
Place, publisher, year, edition, pages
2011. , 66 p.
Micro credit, Bangladesh
Economics and Business
IdentifiersURN: urn:nbn:se:hj:diva-15490OAI: oai:DiVA.org:hj-15490DiVA: diva2:424657
Subject / course
IHH, Business Administration
Gustafsson, Veronica, Professor