Is Microfinance Beneficial or Optimistic

Abstract

Microfinance has been established targeting access to finance for poor people who are screened out from getting loans from formal financial institutions due to lack of collateral and low creditworthiness. There has undergone a tremendous transformation in all aspects of microfinance, including outreach and portfolio size, proliferation of microfinance through a large number of microfinance institutions, diversification of services, new regulatory regime, contribution in rural development, recognition of microfinance as a major contributor in poverty reduction etc. However, the microfinance sector is facing many challenges regarding institutional capacity, quality and diversity of services, fallout from political and macroeconomic factors, replication of agricultural credit and so forth. The objective of this article is to find out whether microfinance has impact on poverty reduction and economic development at all.

Keywords

• Microfinance
• NBFI
• Collateral
• Poverty reduction
• Non-financial services

How to cite

S M Nurul Huda, Shah Alam, Abdur Rahman Akram, Saif Md. Imran Khan (2016). Is Microfinance Beneficial or Optimistic. Sonargaon University Journal, 1(2), 91–107.

@article{huda20168,
  title   = {Is Microfinance Beneficial or Optimistic},
  author  = {S M Nurul Huda and Shah Alam and Abdur Rahman Akram and Saif Md. Imran Khan},
  journal = {Sonargaon University Journal},
  volume  = {1},
  number  = {2},
  pages   = {91--107},
  year    = {2016},
  issn    = {2518-3125},
  url     = {https://su.edu.bd/journal/volume-1-number-2/is-microfinance-beneficial-or-optimistic}
}