Assessing NGOs micro-credit programs: a geo-spatial and socio-economic scenario from rural Bangladesh

Micro-credit programs have an enormous influence on the lives of millions of poor people from the rural areas of Bangladesh. This paper explores the significant contributions made by micro-credit concerning poverty reduction by increasing the income generating activities, empowerment of the rural poor so that they can properly get access to development services. This study is based on a household questionnaire survey, involving 533 respondents, and geographical information system (GIS) analysis to identify the concentration of NGOs, offering micro-credit in rural programs and find potential areas in need of such programs. A total of 30 NGOs with its 175 sub-branches were found in the study area. The NGOs have been considered the savior to the countless number of people who suffers from food, cloth, education and basic health facilities. Among others, the most prominent micro-credit institutions found were BRAC, Grameen Bank, RDRS Bangladesh and ASA. These institutions are working massively on poverty reduction, empowerment, and improvement of living standards for the poor people of the rural area. It indicates that NGOs have recognized to be very successful as a delivery system regarding relief and micro-credit inputs to the rural poor. However, in terms of poverty reduction, some individual achievements may have been made, but net welfare achievements at the union level remain nonexistent. The study suggests that NGOs should also focus on remote areas where such programs are severely needed to reduce poverty alleviation while working on improving their loan management system.