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Impact of Microfinance on Poverty: Qualitative Analysis for Grameen Bank Borrowers

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  • Mohammad Aslam
  • Senthil Kumar
  • Tubagus Ismail
  • Shahryar Sorooshian

Abstract

Poverty is economic, social, political and even moral issue all over the world. Microfinance has been designed to eliminate poverty and may help marginal people to materialize their dreams. Microfinance has been formalized primarily in Bangladesh with this concept. Grameen Bank (GB) has been serving large number of people below poverty level here. Initially, microfinance institutions have been supported by the Government or Donor assuming its positive impact on borrowers. However, ambiguous impacts have been reported in several studies that make microfinance questionable. Therefore, this study intent to measure the impact of microfinance on GB borrowers through the process of qualitative changes in borrowers lives. The process has been measured by some case studies for participant and non-participant borrowers using Modified Household Economic Portfolio Model (M - HEPM). Our qualitative analysis shows that microfinance makes positive changes in the process of borrowers lives observed through financial and activity diaries of the borrowers.

Suggested Citation

  • Mohammad Aslam & Senthil Kumar & Tubagus Ismail & Shahryar Sorooshian, 2020. "Impact of Microfinance on Poverty: Qualitative Analysis for Grameen Bank Borrowers," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 49-59, January.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:1:p:49-59
    DOI: 10.5430/ijfr.v11n1p49
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    2. Abera Alemu & Zerhun Ganewo, 2023. "Impact Analysis of Formal Microcredit on Income of Borrowers in Rural Areas of Sidama Region, Ethiopia: A Propensity Score Matching Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 65-85, March.

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