Overview

Original Research

THE IMPACT OF MICROFINANCE ON BASIC NEEDS AND STANDARD LIVING LEVEL OF RURAL PEOPLE: EMPIRICAL EVIDENCE FROM BANGLADESH

Dr. MD. ARIF BILLAH 1, Dr. SERAJUL ISLAM 2, MONIR AHMMED 3, MD. NUR NOBI 4, MOHAMMAD SAJJADUL HOQUE 5, and ABDUL MANNAN 6.

Vol 18, No 01 ( 2023 )   |  DOI: 10.17605/OSF.IO/RYQ76   |   Author Affiliation: Assistant Professor of Economics, Department of Qur’anic Sciences and Islamic Studies, Faculty of Shariah and Islamic Studies, International Islamic University Chittagong 1; Associate Professor, Department of Business Administration, International Islamic University Chittagong 2; Associate Professor, Department of Economics and Banking, international Islamic University Chittagong 3; Independent Research Fellow, Faculty of Business Administration, International Islamic University Chittagong, Bangladesh 4; M. A (Thesis Group), Department of Qur'anic Sciences & Islamic studies, International Islamic University Chittagong 5,6.   |   Licensing: CC 4.0   |   Pg no: 472-486   |   Published on: 10-01-2023

Abstract

This study intends to ascertain the impact of microfinance on basic needs and standard living levels of rural people in Bangladesh. Microfinance is viewed as a method to support the alleviation of poverty. The study's foundation is primary data gathered from a sample of 400 less-educated individuals who used MFI services. Regression and crosstab analyses were conducted to evaluate the effectiveness of microfinance in addressing fundamental requirements, raising living standards, and boosting income levels. The findings showed a substantial, favorable correlation between microfinance and the reduction of poverty. According to the report, MFIs should provide training before extending loans because the majority of their clients might not be highly educated or talented and require support and training in entrepreneurship and business.

Keywords

Poverty Alleviation, Microcredit, Basic Needs, Standard Living Levels, Entrepreneurship, Skillness