Do Microcredit Programs Ameliorate Standard of Living? Spotlight on Major Microcredit Organizations in Bangladesh

Abstract

Microcredit organizations are playing a pivotal role by conducting various programs on the significance and efficiency of microcredit in Bangladesh. With a view to improving the standard of living through poverty alleviation these organizations provide small loans to impoverished people living in the rural area. This study aims to explicate the significance of the microcredit programs in reducing poverty and to what extent these programs are helpful to borrowers’ income generation that leads to better standard of living. The results find that in case of food consumption and household income generation microcredit programs have significant contributions. This study recommends that some important issues like effective utilization of loan, loan repayment system, interest rate and proper training programs should be conducted by the NGO so that the borrowers of fund can increase their household income.