Impact of Micro-Credit on Poor Households in Kurigram District

Abstract

This paper aims to examine empirically the impact of micro-credit and the living standard of poor people in former enclaves. People of the former enclave economy, like all developing economies, live in rural areas and their living standard are not good. Therefore, the need to improve the living standard of those areas gave birth to the establishment of the Micro-credit organizations in Bangladesh. These organizations targeted low income clients through giving loans and other facilities like savings, insurance, and transfer services to poor low-income households and micro enterprises. Dashier Chara, one of the deprived regions in all former enclaves, was selected to study the impact of Micro credit activities and the living standard of poor people in the area. Primary sources of data collection method were used, and structured schedule also used in the study. The main finding was that the impact of micro credit has contributed positively to improve the living standard of poor people. The contribution was evident in improving their property acquired, housing conditions, livelihood improvement, their income, and subsequently led to good health and education for their families, acquisition of assets. Based on the findings, it is recommended that financial education should be intensified to educate people on financial services.