Books and Research

This paper investigates the impact of microcredit on the household income of the
borrowers and compares the contributions between Grameen Bank and Islami Bank
microfinance schemes on it in Bangladesh. Towards the achievement of its objectives this
study uses descriptive statistical and econometric techniques. The multiple ordinary least
square regression techniques were employed to measure demographic and socioeconomic
factors that affect household total income. We found that there are strong and
significant positive influences of demographic and socio-economic factors towards the
increase of household total income of the both of two MFIs respondents based on the
multiple regression techniques. Moreover, the overall findings indicate that Islami Bank
microcredit respondents have done better record in using credit for income generating
activities for reducing poverty compared to conventional microcredit. The study also
recommended for successfully and effectively operation of microfinance programmes
through increase of proper income generating activities, sufficient amount of access of
credit, increase period of installment repayment, providing necessary skills training and
re-emphasise on the zakat based Islamic mode of financing as well as Qard-al-Hasan on
the basis of spiritual values as an alternative microcredit model for poverty alleviation in
Bangladesh.