Effect of microcredit program on rural poverty alleviation: An empirical study of four major microcredit organizations at Monirampur Upazila in Bangladesh

Abstract

Numerous microcredit organizations conduct microcredit programs in Bangladesh and provide small loans to rural poor people with the purpose of eradicating poverty. This study attempts to elucidate the extent to which these microcredit programs are effective in reducing poverty and to examine the impact of microcredit in income generation and upliftment of borrowers’ living standard. All the respondents of Monirampur Upazila in Jessore district were the population of the study. The estimated results show that borrowers of microcredit programs are better off in terms of food consumption and household income generation. It is recommended that the NGO should consider some important points such as a repayment system, interest rate and proper training program to generate borrowers’ household income. Key words: Poverty alleviation, microcredit program, major microcredit organizations, Bangladesh.