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Economic Impact of MAB Microfinance Program on Borrowers Household: Evidence from Rural Area of Bangladesh
International Journal of Economics, Finance and Management Sciences
Volume 4, Issue 5, October 2016, Pages: 298-302
Received: Sep. 8, 2016; Accepted: Sep. 21, 2016; Published: Oct. 17, 2016
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Authors
Shamsuddin Ahamad, School of Business Innovation and Technopreneurship, University Malaysia Perlis (UniMAP), Perlis, Malaysia
Rosni Bakar, School of Business Innovation and Technopreneurship, University Malaysia Perlis (UniMAP), Perlis, Malaysia
Zulkarnain Lubis, School of Business Innovation and Technopreneurship, University Malaysia Perlis (UniMAP), Perlis, Malaysia
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Abstract
Bangladesh is a pioneer and home of conceptualizing microfinance program. It has taken so many programs to reduce poverty and bring about socio-economic changes in the rural community. Since 1993, Muslim Aid UK, Bangladesh (MAB) is working with poor vulnerable people to improve their socioeconomic status through delivering interest-free microfinance in Bangladesh. This study is, therefore, aims to examine the economic impact of MAB microfinance program on borrowers’ household income and consumption expenditure. Towards the achievement of its objectives, this study used descriptive and statistical techniques. To assess the impacts, primary data were collected from 95 borrowers from Chittagong district of Bangladesh. The simple random sampling method was followed to select the borrowers’. Multiple Linear Regression model were used to analyze the data. The findings revealed that MAB borrower’s income and consumption expenditure increased after receiving the microfinance loan. Based on the results, the findings also revealed that amount of loan, loan sufficiency and religiosity had the most significant effect on income. In case of consumption expenditure, the amount of loan, tenure and loan sufficiency shown the significant effect.
Keywords
Impact, Microfinance, Income, Consumption Expenditure, Bangladesh
To cite this article
Shamsuddin Ahamad, Rosni Bakar, Zulkarnain Lubis, Economic Impact of MAB Microfinance Program on Borrowers Household: Evidence from Rural Area of Bangladesh, International Journal of Economics, Finance and Management Sciences. Vol. 4, No. 5, 2016, pp. 298-302. doi: 10.11648/j.ijefm.20160405.20
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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