EMPOWERING RURAL WOMEN THROUGH MICROCREDIT AND SOCIAL BUSINESS: A COMPREHENSIVE STUDY OF NGOS AND COMMERCIAL BANKS IN NARSINGDI AND KISHOREGANJ, BANGLADESH

Author Name: Abdullah-Al-Mamun

Volume/Issue: 05/05

Country: Bangladesh

DOI NO.: 08.2020-25662434 DOI Link: https://doi-ds.org/doilink/10.2024-81126551/UIJIR

Affiliation:

1. AVP & Manager, The Premier Bank PLC, Bashgari Branch, Kishoreganj, Bangladesh.

ABSTRACT

This study investigates the role of microcredit and social business in empowering rural women in Bangladesh, with a specific focus on the Narsingdi and Kishoreganj districts. It explores how Non-Governmental Organizations (NGOs) like BRAC, ASA - Bangladesh, POPI, Khan Foundation, and Grameen Bank, alongside commercial banks such as Islami Bank Bangladesh PLC, Social Islami Bank PLC, and The Premier Bank PLC, provide financial services to rural women. These institutions offer small, collateral-free loans that enable women to start or expand businesses, improve their financial independence, and enhance their social status within their communities. The article examines the differences in loan delivery models, interest rates, and recovery practices between NGOs and banks. NGOs typically offer loans with easier terms but charge higher interest rates and collect installments weekly, ensuring high recovery rates. Commercial banks, in contrast, provide loans with lower interest rates but implement stricter repayment schedules. Social Islami Bank PLC stands out by using a cluster-based lending model, where borrowers are collectively responsible, resulting in excellent loan recovery performance. Through a combination of case studies and quantitative data analysis, the study highlights significant increases in women’s income, asset ownership, and decision-making power within households. Women participating in microcredit and social business programs have not only improved their financial situation but have also become more active contributors to household decisions and community welfare. The study concludes with recommendations for improving microcredit programs by combining the personalized support offered by NGOs with the structured financial systems of banks to create a sustainable model for rural women’s empowerment..

Key words: Microcredit, Women’s Empowerment, Social Business, Rural Development, NGOs , Commercial Banks, Poverty Alleviation, Economic Growth, Asset Ownership