Determinants of Microfinance performances in Bangladesh: The case study of Rural Development Scheme and Muslim Aid Bangladesh
Abstract
Microfinance programs have been designed for the poor people to access
the formal financial system easily without any collateral. From the
beginning, microfinance programs are trying to reach the poor people to
improve their living standard through income generating activities.
Following this objective, Rural Development Scheme (RDS) and Muslim
Aid Bangladesh (MAB) is working with poor vulnerable people to
improve their socioeconomic standard through delivering interest-free
microfinance in Bangladesh. This study is, therefore, aims to examine the
determinants of microfinance performance in Bangladesh. Towards the
achievement of its objective, this study used qualitative techniques. To
assess the determinants, primary data were collected from 192
borrowers from Chittagong district of Bangladesh. The quota sampling
method was followed to select the clients. The findings revealed that RDS
and MAB have been trying to provide the handsome amount of loan,
training, to the clients to run their business though the amount of loan
and training was not sufficient. Determinants, time duration with
microfinance, client’s age and education level was found in the
acceptable range but there are some issues need to be considered
according to client’s needs.