SOCIO-ECONOMIC EFFECTS OF MICROFINANCE OF GRAMEEN BANK ON BORROWER HOUSEHOLDS IN BOGRA DISTRICT OF BANGLADESH
DOI:
https://doi.org/10.29121/granthaalayah.v7.i5.2019.832Keywords:
Grameen Bank, Microfinance, Socio-economic Impact, Borrower HouseholdsAbstract [English]
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.
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