Abstract
The aim of this article is to measure the economic impact of Rural Social Services (RSS) microcredit programme on its participants. Multistage random sampling method was applied to select total 1,008 beneficiary respondents (households) and 504 control respondents (households) from Bangladesh. The propensity score matching (PSM) technique was applied to analyse the outcome of RSS micro-credit interventions. The results show that there were statistically significant differences in income, food expenditure, and non-food expenditure between the programme and non-programme participants. The result of this survey also reveal that after taking RSS loan, 4.34 per cent graduated from category A to B, and 8.41 per cent graduated from category A to C. On the other hand, 30.43 per cent loan takers graduated from category B to C. This result proves that RSS loan helps a certain number of families uplift their income position. The study suggests to further focus on knowledge and skills development of the poor people.
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