Impact of Rural Development Scheme of Islami Bank Bangladesh Limited on Beneficiaries in Mymensingh Sadar Area

Abstract

The present study was conducted to assess the impact of investment provided under "Rural Development Scheme" (RDS) of the "Islami Bank Bangladesh Limited" (IBBL) on the basis of using data collected from 25 respondents of each of group of investors, agriculture and business of the five selected villages in sadar upazila of Mymensingh district. Total household annual incomes were Tk. 59696 and Tk. 87332 respectively for the agriculture group and business group. The beneficiaries have increased their income (61 percent in agriculture sector and 89 percent in business sector) by using RDS credit. After joining the RDS, there was a remarkable improvement in the living standard of the participant households. Thirty one percent of total credit received from RDS was utilized for agricultural purposes, 53 percent for business purposes and 15 percent for family expenditure on an average. Recovery rate of the current credit was 100 percent. None of the respondents of the group was allowed to have new credit until preceding credit was paid back. The findings suggest that the monitoring mechanism should be improved so that clients do not utilize their invested money to any unproductive activities. It is also suggested that adequate size of the investment has to be provided to pursue income generating activities properly.

Impact of Rural Development Scheme of Islami Bank Bangladesh Limited (IBBL) Upon Economic Development of the Rural Poor of Bangladesh

“…Finally, the examination also recommends some approach rules for the smooth working and improvement of the interest as mentioned earlierfree MFI in any area like Bangladesh. Jinan et al (2008) found that after joining the RDS, there was a meaningful improvement in the expectation for the member family units' everyday comforts. Thirty-one percent of absolute credit got from RDS was used for horticultural purposes, 53 percent for business purposes, and 15 percent for family consumption on a normal.…”

Disbursement and Recovery of Rural Credit: A Study on Rajapur Branch of Rupali Bank Limited

“…In the research the dependent variable recovery depend on more independent variable like age, education, family size, business type and income. The regression form for the rate of recovery of rural credit is specified as: Income of the Debtor (X5) BDT (+) [34] Source: Author's Compilation, 2014…”

“…The micro finance investment system is being established an important impact in the form of increasing the income and reducing poverty style of the beneficiaries. It also helps potential women to be empowered in the society [19]. Ensuring access to credit in the rural areas for augmenting agricultural production, reducing poverty and improving the efficiency of the rural credit delivery system has been an area of focus in the planning process in our country [20].…”

Role of Islamic Micro Finance in Alleviating Poverty in Bangladesh: A Study on RDS of IBBL

“…Khan (2008), opined that "Shariah-compliant" issues are given less significance in microfinance applications even we work in a Muslim environment. Jinan et al (2008), in their research on the impact of RDS of IBBL on its beneficiaries in the Mymensingh Sadar area, found that the recipients have a substantial upward trend in their income (61 percent in agriculture and 89 percent in the business industry). According to estimates of Uddin, RDS has a notable positive impact on the fulfillment of the client"s food intake, education, education, taking clinical treatment, better clothes, the use of the toilet, using clean and pure consuming water, income and expenditure.…”