Impact Of Microcredit Programs On Higher Income Borrowers: Evidence From Bangladesh

Abstract

In this study, we investigate the impact of microcredit on economic indicators of borrowers in Bangladesh and compare if the impact is same across borrowers having different income levels. Our estimation results show that the microcredit programs are effective in generating higher income and assets for borrowers in general. However, the impact is not found to be uniform across income levels of borrowers. Higher income borrowers seem to be better off compared to the middle and lower income borrowers. It is also observed that the age and education of the household head and his/her partner in the family are significant and make a better impact of the household.

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