Abstract
The study is an attempt to examine the socio-economic effects of microfinance of Grameen Bank (GB) on borrower households in the study area. It investigates socio-economic changes occurred among the borrower households in the reference time period. In this regard this study collects required information from 168 respondents in the study area using a structured questionnaire. The collected data were analyzed by using statistical techniques such as descriptive statistics, ANOVA test, Participation Impact Score (PIS) and Standardized Participation Impact Score (SPIS). The ANOVA test is performed to examine the association between microcredit and various socio-economic factors of borrower households and GB’s loan amount. Analysis of the study show that average monthly income, average monthly expenditure, total savings, asset value and other socio-economic status of borrower households increased after joining the groups of Grameen Bank (GB). The results of PIS or SPIS indicate that ‘improved participation in family decision-making’ received the highest score among selected 16 items impacts areas while ‘increased counting ability’ bears the lowest score. In spite of some barriers of GB’s microcredit, it has a positive contribution on socio-economic status of the borrower households in terms of increased income generation and improved livelihood of the borrower households.
Highlights
IntroductionThe economy of Bangladesh mainly depends on agriculture, and about 47.3 percent of people of the country are employed in agriculture sector
Microfinance programme is a development scheme for changing socio-economic status of the borrower households in the rural area of Bangladesh
To estimate the socio-economic impacts microfinance of Grameen Bank (GB) on borrower households in the study area, the researcher has mainly used primary data, secondary data have been used which are obtained from branch and zonal offices of GB
Summary
The economy of Bangladesh mainly depends on agriculture, and about 47.3 percent of people of the country are employed in agriculture sector. Around 24.63 percent of people live below poverty line in the country and poverty rate is more in rural areas compared to urban areas (BER, 2015). High rate of unemployment, high dependency ratio, limited income opportunities, low level per capita income, low level of savings, low level of investment, and high rate of poverty are some of the major problems in Bangladesh. Because of these problems, these poor people suffer from malnutrition, and they cannot afford sufficient quantity and nutritious food to eat. In Bangladesh, NGOs have came forward for intervention with their microcredit programmes
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