IMPACT OF MICROCREDIT ON POVERTY ALLEVIATION: A CASE OF ADIBASHI BENEFICIARIES OF DINAJPUR

Abstract

The objective of this study was to assess the impact of microcredit program on poverty alleviation of adibashis credit borrowers and to explore the contribution of the selected characteristics to impact of microcredit programs. Poverty alleviation was measured by computing the seven dimensions of change, such as change in income, food consumption, housing environment, health status, family assets, participation and social position and vulnerability of adibashi credit receivers on the basis of before and after their involvement with microcredit programs. Data was collected through household-level survey of 77 adibashi credit receivers of purposively selected two unions e.g. Eluary and Kazihal under Fulbari upazila of Dinajpur district applying random sampling. Findings indicated that 75.3 percent of the respondents had medium to low change in income after the involvement with microcredit. 80.2 percent of the respondents were belonged to poverty line II before the involvement with credit but calorie intake changed to 61.30 percent that belonged to below poverty line I after the involvement with credit. Before involvement, 54.5 percent of the respondents had katcha ghar with tin roof but after involvement the percentage increased to 89.6. Before involvement 3.9 percent of the respondents used half sanitary toilet where after involvement this percentage turned into 20.8 percent. 79.2 percent of the respondents had medium to low change in health status, 74 percent of the respondents had low to medium change in possession of assets, 59.8 percent of the respondents had low to medium change in participation and social position and 71.5 percent of the respondents had positively low to medium change in vulnerability after involvement with microcredit. 88.3 percent of the respondents had medium to low poverty alleviation after involvement with microcredit. Farm size, credit utilization, effectiveness of credit utilization and duration of involvement with microcredit program had significant contribution to the impact of microcredit. Need new loan for repayment of the previous loan was identified as respondents’ main problem