Effectiveness of Islamic Microfinance in Alleviating Poverty: Empirical Evidence from Bangladesh

Md. Nur Nobi, Md. Arif Billah, Asaduzzaman Shohel and Tani
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Md. Nur Nobi: Faculty of Finance and Administrative Sciences, Al-Madinah International University, Malaysia
Md. Arif Billah: Assistant Professor of Economics, Department of Qur’anic Sciences, International Islamic University Chittagong, Bangladesh
Asaduzzaman Shohel: International Islamic University Chittagong, Bangladesh
Tani: Department of Public Administration, Jagannath University, Bangladesh.

International Journal of Science and Business, 2021, vol. 5, issue 4, 1-10

Abstract: Islamic Micro - finance (IMFc) is an evolving technique to empower the deprived and needy population. The present study was intended to investigate the effect of the IMFc on the resources of individuals borrowing from an Islamic microfinance institution and their poverty status. The prime intention of this paper is to justify the effect of IFMc for poverty alleviation. The study reveals that IMFc programs have introduced a positive result on significant numbers of poor. Islamic microfinance has significant impacts on income, savings and expenditure levels of the household. The analysis shows that in general, the Islamic micro finance is an instrument that can help to accumulate savings and income and finally assist to alleviate their poverty. But still it is not only the instrument that can alleviate poverty but it is the vital component that can help to the poor people for standard living levels. Our analysis shows that after taking Islamic finance there is a significant change in the respondents’ income savings and expenditures.

Keywords: Islamic Finance; Poverty Alleviation; Microcredit; Poverty; NGO; Bangladesh; Islamic Microfinance; Income Level; Islamic Banking; Socio Economic Development; Rural Development (search for similar items in EconPapers)
Date: 2021
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