Published An Article Titled:"Critical Lapses Resulting in Inadequate Reduction of Poverty Level of the Microcredit Recipients: A Study of the Dhaka City Microcredit Recipients" in ASA University Review, 17th Issue, Vol. 9, No. 2, July-December, 2015.
Abstract: The performance of micro credit institutions is always under continuous scrutiny. The supporters of micro credit institutions praise their contribution to our economy but some critics always accuse them of being greedy by charging too much interest and say that these micro credit lenders have done very little in reducing the poverty level of our country. In our study, we have avoided this controversy and focused our attention on the issues that can make micro credit more successful in improving the economic situation of the loan recipients. We have selected 250 samples through simple random sampling method from the Dhaka city micro credit recipients. From the analysis, it is found that a borrower’s failure to reduce the poverty depends on the absence of proper guidance from the lender, high interest rate, not properly investing the micro credit loan, lack of proper business knowledge and inadequate money to invest in profitable business. It is found that 50% explanation of a micro credit recipient’s success or failure lies on these variables. On the basis of the findings, we have suggested that micro credit institutions should put in place a rigorous monitoring system to ensure proper utilization of the loan and to provide continuous suggestion about the various aspects of the business and should act as a business consultant also.