The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator
Microfinance programs have been designed for the poor people to access the formal financial system easily without any collateral. From the beginning, microfinance programs have been trying to reach the poor people to improve their living standard through income generating activities. Following th...
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my-unimap-775452022-12-20T03:40:42Z The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator Rosni, Bakar, Prof. Dr. Microfinance programs have been designed for the poor people to access the formal financial system easily without any collateral. From the beginning, microfinance programs have been trying to reach the poor people to improve their living standard through income generating activities. Following this objective, the Rural Development Scheme (RDS) and Muslim Aid Bangladesh (MAB) are working with the poor vulnerable people to improve their socioeconomic status through delivering interest-free microfinance in Bangladesh. This study is therefore, aims to examine the effects of Islamic microfinance on borrowers’ household welfare. Towards the achievement of its objectives, this study used descriptive and statistical techniques. To assess the effects, qualitative and quantitative data were collected from 192 borrowers from Chittagong district of Bangladesh. Quota sampling method was used to select the borrowers’. Quantitative techniques were used to analyze the data. The descriptive results revealed that the RDS and MAB have been trying to provide the handsome amount of loan and training to the clients to run their businesses though the amount of loan and training were not sufficient. Determinants, time duration with microfinance, client’s age and education level were found in the acceptable range but there are some issues that need to be considered according to the clients’ needs. The findings showed that the RDS and MAB effectively have increased the clients’ income. The RDS and MAB also helped to raise their clients’ wellbeing through improve the expenditure ability on food, clothing, child education, medical treatment, repair and maintenance. However, in terms of improving the household’s asset accumulations, the RDS and MAB still could not able to change the clients’ household assets as expected by the clients. Based on the hypotheses testing, the findings revealed that the amount of loan, tenure, education and age of borrowers had the most significant effects on income. In the case of overall wellbeing, the amount of loan, tenure and borrowers income shown the significant effects. This study also predicted that religiosity can act as a moderator in order to enhance the effect of microfinance success factors on income and wellbeing. The results of the study indicated that the role of religiosity as a moderator was evidenced on the relationship between three influencing factors (amount of loan, tenure, and education level) and income. On the other hand, the result was evidenced on the relationship between two influencing factors (amount of loan and income) and wellbeing. Therefore, these findings indicated that the overall welfare of the Islamic microfinance borrowers has increased after receiving and using the microfinance loan. Universiti Malaysia Perlis (UniMAP) Thesis en http://dspace.unimap.edu.my:80/xmlui/handle/123456789/77545 http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/4/license.txt 8a4605be74aa9ea9d79846c1fba20a33 http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/1/Page%201-24.pdf 36cc93fa583e3928121bc66f5964077c http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/2/Full%20text.pdf 24d3ed146c6bb26aafbee689e4c57f53 http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/3/Declaration%20Form.pdf 16072853fbeeb667bb7b8d94dc713f9e Universiti Malaysia Perlis (UniMAP) Microfinance Microfinance -- Bangladesh School of Business Innovation and Technopreneurship |
| institution |
Universiti Malaysia Perlis |
| collection |
UniMAP Institutional Repository |
| language |
English |
| advisor |
Rosni, Bakar, Prof. Dr. |
| topic |
Microfinance Microfinance -- Bangladesh |
| spellingShingle |
Microfinance Microfinance -- Bangladesh The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator |
| description |
Microfinance programs have been designed for the poor people to access the formal
financial system easily without any collateral. From the beginning, microfinance programs
have been trying to reach the poor people to improve their living standard through income
generating activities. Following this objective, the Rural Development Scheme (RDS) and
Muslim Aid Bangladesh (MAB) are working with the poor vulnerable people to improve
their socioeconomic status through delivering interest-free microfinance in Bangladesh.
This study is therefore, aims to examine the effects of Islamic microfinance on borrowers’
household welfare. Towards the achievement of its objectives, this study used descriptive
and statistical techniques. To assess the effects, qualitative and quantitative data were
collected from 192 borrowers from Chittagong district of Bangladesh. Quota sampling
method was used to select the borrowers’. Quantitative techniques were used to analyze the
data. The descriptive results revealed that the RDS and MAB have been trying to provide
the handsome amount of loan and training to the clients to run their businesses though the
amount of loan and training were not sufficient. Determinants, time duration with
microfinance, client’s age and education level were found in the acceptable range but there
are some issues that need to be considered according to the clients’ needs. The findings
showed that the RDS and MAB effectively have increased the clients’ income. The RDS
and MAB also helped to raise their clients’ wellbeing through improve the expenditure
ability on food, clothing, child education, medical treatment, repair and maintenance.
However, in terms of improving the household’s asset accumulations, the RDS and MAB
still could not able to change the clients’ household assets as expected by the clients. Based
on the hypotheses testing, the findings revealed that the amount of loan, tenure, education
and age of borrowers had the most significant effects on income. In the case of overall
wellbeing, the amount of loan, tenure and borrowers income shown the significant effects.
This study also predicted that religiosity can act as a moderator in order to enhance the
effect of microfinance success factors on income and wellbeing. The results of the study
indicated that the role of religiosity as a moderator was evidenced on the relationship
between three influencing factors (amount of loan, tenure, and education level) and
income. On the other hand, the result was evidenced on the relationship between two
influencing factors (amount of loan and income) and wellbeing. Therefore, these findings
indicated that the overall welfare of the Islamic microfinance borrowers has increased after
receiving and using the microfinance loan. |
| format |
Thesis |
| title |
The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator |
| title_short |
The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator |
| title_full |
The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator |
| title_fullStr |
The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator |
| title_full_unstemmed |
The effects of Islamic microfinance on borrowers household income and wellbeing in Bangladesh: religiosity as moderator |
| title_sort |
effects of islamic microfinance on borrowers household income and wellbeing in bangladesh: religiosity as moderator |
| granting_institution |
Universiti Malaysia Perlis (UniMAP) |
| granting_department |
School of Business Innovation and Technopreneurship |
| url |
http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/1/Page%201-24.pdf http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/2/Full%20text.pdf http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/77545/3/Declaration%20Form.pdf |
| _version_ |
1776104278462562304 |