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Microfinance and Poverty Reduction: Is there a Trade-Off? A Case Study from Rural Bangladesh

M. Nurul I. Shekh · 2006 · Forum for Development Studies

Summary. Microfinance institutions in rural Bangladesh prioritize financial sustainability over poverty reduction, leading them to exclude the poorest households and serve wealthier borrowers instead. The study of ASA, a major microfinance organization, reveals that rigid lending practices fail to accommodate borrowers with limited financial skills and repayment capacity. The author argues MFIs must redesign their methodology to serve the poorest effectively and achieve genuine poverty reduction.

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Shekh, M. N. I.. (2006). Microfinance and Poverty Reduction: Is there a Trade-Off? A Case Study from Rural Bangladesh. Forum for Development Studies. https://doi.org/10.1080/08039410.2006.9666355

Details

DOI
10.1080/08039410.2006.9666355
Countries
Bangladesh
Regions
Asia
Categories
funding, policy
Added
2026-04-28