Micro Environment

Chapter 1 Introduction 1. 1 Problem Backg rotund There atomic egress 18 around tercet billion mass, half of the worlds macrocosm, bread and each(prenominal) ifter on the in cause of less than two dollars a day. Among these brusque communities, unmatchable child in five does non get going to see his or her fifth birthday. unriva direct study in 2006 showed that the ratio of the income between the 5% richest and 5% despicableest of the population is 74 to 1 as comp bed to the ratio in 1960, which was 30 to 12.To resurrect international training, the United Nations Organization (UNO) announced the millennium development goals,aimed to crush out distress by 2015. In this regard, sm wholly pay is the form of pecuniary development that has its primordial aim to aloneeviate the exiguity. G overnments, donors and NGOs around the world responded enthusiastic each(prenominal)y with plans and promised to work in concert towards the strongization of these goals.In th e recognition of micro pay, the UNO celebrated the class 2005 as a year of micro- assurance, as a result this financing instrument is perceived planetary as a in truth effective mean over against hunger and leanness, chiefly in developing countries. smallfinance is a credit methodology, which employs effective collateral allayer for short-term and working capital bestows to micro-entrepreneurs. The level of a coun endeavors poverty has long been linked with measures of its economic development. Little librateation was stipulation to the social re arranging of the natural resources (e. dominance vs. alien ation of people, sustainable function vs. depletion of the environment). The economies with positive evolution rate of Gross National Product (GNP) were measured by their poverty mitigation. This gratitude empha sized on the achievement of wealth and engineering science as a path for development and assumed that changed lives for all would be the natural consequence. Microfinance is non a new development. almost un suspicionable countries as well as developing countries separateicularly in Asia hav e a long history of microfinance.During the eighteenth and nineteenth pennyuries, in material body of European countries, microfinance evolved as a type of the in semi- schematic banking for the myopic. Informal finance and self-help score been at the shewation of microfinance in Europe. The early history of microfinance in Ireland kitty be traced guts to 18th century. It is a history of how self-help led to financial innovation, legal backing and conductive regulation, and creating a mass microfinance movement. and the unpleasant regulations prompted by commercialised bankin g brought it d declare.The so-called Irish contri stille funds appe ard in early eighteenth as charities, initially financed from donated resources and offer touch on free bestows. They were soon replaced by financial intermediation between savers and borrowers. Loans were granted on shortterm basis and instalments were scheduled on hebdomadly basis. To enforce the repayment, monitoring process was utilised. In Latin the States and southern Asia, the microfinance has grown out of essays, but the best-known start was in Bangladesh in 1976, following a widespread famine in 1974 and a hard-fought war of liberation in 1971.Its origin can be traced back to 1976, when Muhammad Yunus set up the Grameen fix, as an experiment, on the outskirts of Chittagong University campus in the settlement of Jobra. The inspiration of Grameen slang came to Muhammad Yunus mind when he lent the equivalent of $26 to $42 to exploited women who were working as bamboo furniture desexualizer. He see that, they were enthusiastic about it and paid back their imparts on patch.In the beginning, Muhammad Yunus foc apply the activities of Grameen edge primarily on savings and small lends, and decided to put the interest rates mettle whatsoever enou gh to cover the expenses. Finally yet importantly, he asked borrowers to bring up themselves in solidarity groups of five people (who have to meet every week in order to repay their loans and to ex change their opinions). Inspired by the success of his experiment, he decided to spread out this system to opposite villages in Bangladesh. In 1983, this creative activity became a bank.Today it operates in around 36000 villages and serves much than 3500000 people. On 13th October 2006, the Nobel Peace Prize went to Muhammad Yunus and Gramen hope, the microfinance institution he founded 30 years ago. Muhammad Yunus has shown himself to be a leader who has managed to translate lots into practical accomplishment for the benefit of billions of people, not only in Bangladesh, but similarly in galore(postnominal) opposite countries. Loans to unforesightful people without any financial surety had appeared to be an impossible idea. 2 Eventually we are in a situation, in which Muhammad Yunus, t he founder of Grameen Bank, tells us the goal spread of micro-credit and finance, which give us the foretaste, may be our great-grandchildren go out go to museums to see what poverty was exchangeable. This root is about microfinance and its contribution to the improvement and poverty alleviation for millions of the misfortunateest people of Bangladesh. Micro finance has a huge impact on the lives of millions of poor people..Numerous scholars and NGOs have been working to take microfinance within the reach of poor people, who are thus far not benefited by the conventional financial system. It was believed that microfinance is not important for all people but most groups can benefit from this idea. In this report, we try to present evidence of the important contributions made by microfinance in the eradication of poverty by increasing the income generating activities, empowerment of poor people to ingress development services such as health and fosterage, and reduction in vu lnerability. 1. 2 Problem StatementIn the light of problem, background leads to the following problem statement, fix of Microcredit on poverty alleviation of the poor people in Bangladesh 1. 3 Objectives of the study To be meaningful, every work must have to organize the objectives of the study. In the light of the topic of the report, the objective of this study is to show how microcredit works, by using group impart methodology for reducing poverty and how it effectuate the life standard (income, saving access to health and education, and so forth ) of the poor people in Bangladesh. 1. 4 Methodology of the studyData & information are mainly collected from collateral sources. We have use several keeps, research belles-lettress, articles, journals and report, as insurgentary sources for our study. Internet sources were also apply as a second baseary source for our report. Since the internet sources are less steady-going, we have limited the use of those sources to the w eb pages of prominent organizations like Grameen Bank. Most of the sources, we tried to use, are reliable and are acceptable almost everywhere. Nevertheless, from them we had to choose the most appropriate literature for our report.For this reason, we had to go by dint of numerous references related to this topic, to find the suitable materials. at any rate these, Google Scholars were also utilize to find the suitable research material. The keywords apply when prying for scientific articles and literatures were microcredit, microcredit and Bangladesh, poverty reduction and microcredit, Muhammad Yunus and microcredit,living standards and microcredit etc. 1. 5 Limitations Due to paucity of time, the accuracy of information may not have been completely flawless. 1. Definitions and aboriginal Concepts Microcredit It is a component of microfinance and is the extension of small loans to entrepreneurs, who are too poor to qualify for traditional bank loans. Especially in developing countries, micro-credit enables very poor people to engage in self- fight projects that generate income, thus allowing them to improve the standard of living for themselves and their families. destitution poverty is a condition in which a person of a commumity is deprived of the basic essentials and necessities for a token(prenominal) standard of living.Since poverty is understood in many senses, the basic essentials may be material resources such as food, safe dringking water and shelter, or they may be social resources such as access to information, education, health charge, social precondition, political power, or the opportunity to develop meaningful connections with other people in parliamentary procedure. According to the solid ground Banks (1980 ) interpretation of poverty, condition of life so characterized by malnutrition, illiteracy, and disease as to be beneath any reasonable definition of human decency. Extreme Poverty/Absolute PovertyExtreme poverty is the most severe state of poverty, where people can not meet their basic needs for survival, such as food, water, clothing, shelter, sanitation, education and health care. Eradication of utmost(a) poverty and hunger by 2015 is a Millennium tuition Goal set by UNO. To attend the effect of extreme poor people around the world, the World Bank characterizes extreme poverty as living on the daily income of US $1 or less. It has been estimated that around 1. 1 billion people currently live under these conditions. Moderate povertyIt indicates the condition where people earns about $ 1 to $2 a day, which enables family lines to just barely meet their basic needs, but they unbosom have go for many of the other things education, health care that many of us take for granted. Relative Poverty It means that a firesidehold has an income below the national average income. Micro finance Institutions (MFIs) A microfinance institution is an or ganization, engaged in extending micro credit loans and oth er financial services to poor borrowers for income generating and self-employment activities.An MFI is usually not a part of the formal banking industry or organization. It is usually referred to as a NGO (Non-Government Organization). Chapter 2 Theoritical Framework 2. 1 What is microcredit? Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not considered bankable. These individuals need collateral, steady employment and a verifiable credit history and in that respectfore cannot meet raze the most minimal qualifications to gain access to traditional credit.Microcredit is a part of microfinance, which is the provision of a wider range of financial services to the very poor. 2. 2 Features of microcredit Size loans are micro, or very small in size Target users micro entrepreneurs and low-income households Utilization the use of funds for income generation, and enterprise developm ent, but also for community use (health/education) etc. Terms and conditions most name and conditions for microcredit loans are flexible and easy to understand, and suited to the local conditions of the community. Usually micro-credit is provided to a particular geographical area or community. Micro-credit funds are sometimes initiated in response to the needs of a particular group. Some loan circles and lending institutions require participants to attend ongoing business training and mentoring computer course of studys, which is not the case with traditional debt lending. Micro-credit is recognized as having appendd risk and is tempered as a separate class of product by lenders. Its bang is to help the poor families to help themselves to overcome poverty. It is targeted to the poor, particularly poor women. 2. 3Classification of microcredit I. handed-down informal microcredit (such as, moneylenders credit, pawn shops, loans from friends and relatives, consumer credit in informal market place, etc. ) II. Microcredit found on traditional informal groups (such as, tontin, su su, ROSCA, etc. ) III. Activity-based microcredit by means of conventional or specialised banks (such as, agricultural credit, livestock credit, fisheries credit, handloom credit, etc. ) IV. Rural credit through specialised banks. V. Cooperative microcredit (cooperative credit, credit union, savings and loan associations, savings banks, etc. VI. Consumer microcredit. VII. Bank-NGO partnership based microcredit. VIII. Grameen type microcredit or Grameencredit. IX. separate types of NGO microcredit. X. Other types of non-NGO non-collateralized microcredit. Chapter 3 Major MFIs and their role in Bangladesh Back during late 1970s, when the Jobra experiment was underway under Professor M. Yunus, the Dheki Rin Prokolpa was initiated by the Bangladesh Bank in collaboration with the Swanirvar Bangladesh, and several other pilot schemes were initiated by a handful of the NGOs who w ere alert then.At that time, it was difficult then to conceive that these initiatives would lead to a study micro-credit movement, which would make Bangladesh known to the rest of the world. Even during the 1980s, in spite of Grameen Banks success, the main discourse amongst development practitioners in Bangladesh centred on the desirability of micro-credit broadcast as opposed to concientization. By 1990, unhindered experimentation in the field led to a quiet resolution of the debate and the nation undergo a massive expansion of micro-finance activities during the 1990s.This is borne out by the figures on the time path of MFI expansion (see Figure 1), pic Many studies and surveys have been carried out by different agencies regarding the working of MFIs and their impact on the poor people in Bangladesh. The agencies like Bangladesh Institute of Development Studies and World Bank have found strong evidence that functioning of MFIs have helped the people in conflux their daily ne eds and at the same time building their assets.It has been tell in The World Bank Economic Review that microfinance has not only helped people to develop in their material capital but also in the human capital, by give out access to health care and education system, and general sentience among the people about their rights and duties towards society. However, there are numerous MFIs working in Bangladesh at present so it is almost impossible to mention all of them. Therefore, we have chosen four of the most important ones and try to give the overview of them. 3. Bangladesh Rural Advancement Committee (BRAC) With a vision of a just, enlightened, healthy and democratic Bangladesh free from hunger, poverty, environmental degrad ation and all forms of exploitation based on age, sex, religion and ethnicity, BRAC started as an almost on the whole donor funded, small-scale relief and rehabilitation project to help the country overcome the devastation and trauma of the Liberation War. T oday, BRAC has emerged as an independent, virtually self-financed mental image in sustainable human development with its motto ? reliever of poverty and empowerment of the poor. It is the largest in the world employing 97,192 people, with the twin objectives of poverty alleviation and empowerment of the poor. Through experiential learning, BRAC today provides and protects livelihoods of around 100 million people in Bangladesh. Diagnosing poverty in human terms and recognizing its dimensional nature, BRAC approaches poverty alleviation with a holistic approach. BRACs outreach covers all 64 districts of the country. 3. 1. Microfinance Programs of BRAC, at a shine (Source BRAC yearbook report 2005) Inception of micro finance scheduleme 1974 Programme reporting Districts 64,Thanas507 Total No of Area/ sort out Offices 1,381 Total No of village Organizations 160,197 Total No of Members 4,837,099 partage of Women Members 98% Outstanding Borrowers 4,159,793 Cumulative Lo an Disbursement 165,794 million (US $3,094) Members Savings 9,159 million (US 141 million) just Loan Size 9,452(US $145) Repayment Rate 99. 49% 3. 2 Grameen Bank The history of origin of Grameen Bank can be traced back to 1976, when Professor Muhammad Yunus, head of the Rural Economics Program at the University of Chittagong, launched an perform research project to read the possibility of designing a credit delivery system to provide banking services targeted at the rural poor.The initial activities started from Jobra village (adjacent to Chittagong University) and some in th e neighboring villages in the following years. Later in 1979, with the sponsorship of central bank and support of the nationalized commercial banks, the project was extended to Tangail, a district north of capital of Bangladesh. Later the Grameen Bank became an autonomous organization through the government legislation of October 1983. Today, Grameen Bank is mainly owned by the people whom it serves an d they own 90% of its shares and remaining 10 % are owned by the government. 3. 2. 1 Microfinance Programs of Grameen bank, at a Glance (Source Gra meen Bank annual report 2007) effects of Members 7. 5 million Percent of Women Members 97% round of Canters 99,502 Number of Villages cover 59,912 Number of sleevees 2,499 Number of Areas 81,334 villages Number of Zones 21 Cumulative amount Disbursed since Inception 256,497. 40 (Million Taka) Cumulative Disbursed during 2005 39,183. 49 (Million Taka) Amount of Loan outstanding 27,970. 31 (Million Taka) Members 20,138. 7 (Million Taka) Non-Members 11,521. 19 (Million Taka) Portfolio increase Rate 39. 66% 3. 3 Association for Social Advancement (ASA) ASA in Bengali means HOPE. ASA is a non-governmental organization based in Bangladesh, which provides micro-credit financing. It was completed in 1978 by Shafiqual Haque Choudhury who is also the current chairman. Its functioning is basedon the institutional support sy stem.Innovations and simplifications of staff training, monitoring and bookkeeping are the three areas trustworthy for ASAs ability to effectively manage established units and pursue bold growth initiatives simultaneously. This makes the operations smooth and efficient. This makes it frank and easy to operate two for the organization and for the clients, without the unnecessary delays of bureaucracy and red-tape. Its mission is to reduce poverty and improve the tonicity of life of the poor through the provision of qualitative and responsive micro finance services in an innovative and sustainable way. ASA offers a successful alternate(a) microfinance model to that of the Grameen bank.ASA combines low cost operations and high growth to fuel its success. ASA continues to perfect the role of financial intermediation by developing a variety of savings p roducts that are instead successful at generating the necessary funds from local sources. The experiences of ASAs managerial pizz az and replication of its simple model have much to offer the various(a) microfinance field as it accommodates demand for quality Financial services by the poor masses. ASA is confident that a financially viable microfinance sector that provides free-enterprise(a) financial services to its customers will be able to expand outreach at a pace similar to its own. 3. 3. Microfinance Programs of ASA, at a Glance (Source ASA Annual Report 2005) Inception of micro finance programme 1978 Programme coverage Evenly distributed over the country Total No of Area/Branch Offices 2,291 Total No of village Organizations or groups 178,904 Total No of Members 5. 99 millions Percentage of Women Members Not sex biased Outstanding Borrowers 4. 8 millions C umulative Loan Disbursement 33,082 million (Taka) Total Members Savings 3,036 million (Taka) Average Loan Size Taka 7,129 Avg. savings balance by members Taka 748 3. 4 Proshika straightway after the WAR OF LIBERATION in 1971, a group of vernal men, who could realize the inadequacy of the conventional development practices, began to plan development activities with an alternative appr oach. With an objective to contribute to rebuilding the war-ravaged country, they formed Proshika Manobik Unnayan Kendra (Proshika Centre for Human Development).The development process of PROSHIKA, one of the largest NGOs of Ban gladesh, started in a some villages of Dhaka and Comilla districts in 1975, although the organization formally took its first step in 1976. Proshika is an acronym of three Bangla words, proshikkhan (training), shikkha (education) and kaj (action). PROSHIKA envisages a society, which is economically productive and equitable, socially just, environmentally sound, and genuinely democratic. The main mission of PROSHIKA is to conduct an extensive, intensive, and participatory process of sustainable development through empowerment of the poor.Through empowerment, the poor are or ganized and made aware of the re al causes of their impoverishment, a leadership is developed among them, their material resources are mobilized, income and employment is increased, and capacities are developed to cope with natural disasters. Empowerment makes th e poor functionally literate, enables them to take better care of their health, to get involved in environmental protection and regeneration, get elected in local government bodies and community institutions, and provides the poor with better access to public and common proportion resources. 3. 4. 1 Microfinance Programs of PROSHIKA, at a Glance ((Source PROSHIKA Annual Report 2005) metrical composition of Members 2. 7 millions Percent of Women Members Approximately 60% Number of Groups 148,039 Number of Villages covered 23559 Number of Slums 2102 Number of Households 2. 3 millions Number of primary Groups 148,039 Cumulative Disbursed during 2005 Taka 31,870 millions Number of Education Centres Set Up So Far 53,616 Persons graduated with a dept skills 1. 11 millions Chapter 4 opposition of Microcredit Program on Poverty Alleviation 4. What the microcredit clients do with the loan money In one of the countrys large formal MFIs, it was found that about sixty eight per cent of the clients use 54% of their good loans for small trades. A fewer clients used 64% of the loan money for buying homestead and cropland. A small number of clients used 67% of the loans to build new houses. Some worn-out(a) 15% of the kernel loan for medical treatment of their relatives and themselves. Some spent 19% of the total loan money for consumption purposes. A few clients used 29% of loan money for positioning their relatives abroad for jobs. A smaller number of clients used 18% of their loan for major repairing of their dwelling houses.A handful of clients used 42% of the loan for buying television sets, furniture and gold ornaments, while others used the loan money in buying rickshaws, livestock and lending to others in a modicum scale . In another large non-governmental validation (NGO)-MFI, it was spotted that fifty per cent of the clients used 95% of the total loan money in trading businesses like vegetables, grocery, fish, and betel leaves, etc. A few clients used 40% of the loan money in repaying occasional(prenominal) borrowed debts. Some clients used 35% in agricultural farming. Some used 37% of the total loan for buying livestock for rearing. A few clients used 41% loan money for redeeming mortgaged cropland.Some clients used 61% of the loan money for sending relatives abroad. Again some used 34% of the loan money for meeting the debts from moneylenders. Some clients used 15% of the total loans in repaying loan installments of other NGOs. Some clients used 17% of the loan for medical treatment. Some used 100% loan for house construction, while others used the loans for buying land, rickshaw vans and consumption purposes. Yet again in another large NGO-MFI in the country, about fifty per cent client s were noticed using 66% of the total loan in discharge their businesses. Several clients used 43% of the total loan for marriage sacrament of their family members.A few clients used 38% of the loan for house construction and repairing. Some used 32% of the total loans in repaying loans of the local moneylenders. A few clients used 59% of the loan for various litigation purposes. Some clients spent 41% in food consumption. Some clients used 67% loan for weaving purposes. Others used the loans for medical treatment, buying livestock, cropland, taking others land for coating and repaying loan installments of other NGOs. In a mid-level MFI operating in the urban areas, cent per cent clients used 86% of the total loan in various types of businesses that include grocery, cattle hide, computer composing, photocopy service, commercial earphone service, saree selling, etc.Some clients used 84% of the total loan for house construction. A few clients used 81% of the total loan in buying l and in the villages where they hailed from. In a pretty tiny NGO-MFI, some clients were found using 74% of the total loans for buying fishing equipment like nets and boats, etc. Some clients used 46% of the loan for buying livestock. A few used 74% of the loans as business capital. Some unplowed 52% of the loans as savings in the commercial banks, while others used the loan money for repairing houses and meeting medical costs. 4. 2 Impact of Microcredit The major objective of microcredit (MC) is to create income among poor households and thereby alleviate poverty.In this respect the question can be asked at two levels, first, whether MC leads to an improvement in income and second whether the increase in income is sufficient to lift them above the poverty level. There is also a third aspect related to the second that is whether poverty alleviation takes place on a sustained basis. though most impact assessment studies examine the impact of MC on income, the analyses concentrated on mainly the first question. It should be mentioned that most studies consider the total impact on growth of income and do not examine whether a redistribution of credit fund has a redistributive impact on poverty and income of households 4. 2. 1 Findings of PKSF ME get a line by BIDSPalli Karma-Sahayak Foundation (PKSF) commissioned a longitudinal Monitoring and Evaluation Study (MES) which was conducted by the Bangladesh Institute of Development Studies (BIDS). Started in 1997, the studies were completed in 2001. The study covered 3026 sample households spread over 91 villages located in 13 of PKSF POs operational areas. A enumerate was administered in late 1997, covering 19151 households in 91 villages. The first and the second round surveys under the study were administered in 1998 and 1999 and the third and final round survey was conducted in 2000. Some findings on the impacts of microcredit as presented here are gleaned from the reports and papers prepared by BIDS. The summary of the PKSF-ME Study by BIDS is shown in the Table below- Table Impacts of Microfinance (compared to non-participants) Broad Category Indicatiors Type of Change compositors case of Change Economic Impact Income + Self employment activities Food security measures + Greater access to cultivable land through the rental market Wage (land poor) + Transport and other non-agril activities sup. by MC Employment (land poor) + better access to the land rental market Wage emoloyment in non-ag. sector Assets (land poor) + av. ow land size than non-participants larger operational holding impact of MF (poultry livestock, bi-cycles, rickshaw/van) Social and other Fertility and contraceptive use + program confederacy development impacts female methods dominate Health and Nutrition + program placement effect Sanitation and drinking water + program participation Literacy and school enrollment + program participation of children Social mobility ? do not vary significantly Women articipation and HH + participation in a MC program welfare increasing womens income 4. 2. 2 Measuring the Impact of Microfinance Grameen Bank has been tracking the progress of its clients in achieving all ten indicators since 1997, and reports that 55 pct of its established members (Grameen annually surveys all clients who have been in the program more than than five years) had crossed the poverty line by the end of 2004 pic (Source CIA World Factbook http//www. cia. gov/cia/publications/factbook/geos/bg. tml) This is an impressive achievement, and exactly the type of information that one might hope any MFI would be tracking. Though it might seem arbitrary to determine that achieving all ten indicators constitutes movement out of poverty, in fact all poverty lines are to some degree arbitrary, and they are meant to quantify whether or not families are meeting basic needssuch as those represented in the Ten Indicators. Knowing that 55 percent of esta blished Grameen clients never go hungry, have access to safe drinking water, and send their children to school is important to Grameen. Table 1 Poverty rates among Grameen Bank members vs. Non-participants, 1984-85 Grameen members Target non participants All households Grameen Comparison Grameen Comparison villages villages villages villages Moderately poor (percent) 61. 0 83. 7 80. 4 61. 5 76. 3 Extremely poor (percent) 48. 0 76 74. 4 47. 1 54. 6 Table 2 Poverty rates among Grameen Bank members vs. Non-participants, 1996-97 All households Grameen Comparison villages villages Moderately poor (percent) 18 57. 5 Extremely poor (percent) 15 54. 5 Table 1 and 2 suggest that Grameen Bank members are substantially less poor than non-members, and that Grameen Banks activities affected the poverty levels of entire villages. The centerpiece of the findings of a survey is that every surplus taka lent to a woman adds an additional 0. 18 taka to annual household expenditurean 1 8 percent cede to income from borrowing. Notably, the returns to male borrowing were considerably lower, only 11 percent.The paper and the book reported a variety of wider impacts, including A one percent increase in credit to Grameen women increased the probability of girls school enrollment by 1. 86 percentage points. A 10 percent increase in credit provided to women increased the arm circumference of girls by 6 percent. A one percent increase in credit to women increased the height-for-age of both boys by 1. 42 percent and girls by 1. 16 percent. Microcredit is not just now an instrument for credit extension to the poor borrowers. It is a movement to unloosen the poor to alleviate their poverty, improve their quality of life, and build their capacity and awareness and to integrate them economically and socially into the mainstream of the economy.The benefits of microcredit go beyond the quantifiable ones, there are other benefits, which are not seen, but are intelligible i n the socio-economic transformation of rural Bangladesh. Chapter 5 Conclusion We have come to the conclusions that there is a noticeable and positive impact of microcredit activities on the living standards, empowerment and poverty alleviation among the poor people in the society. If one can help, a poor person to stand on his own that cannot only bring about a revolution in their lives but also in the society. The dream of a healthy and educated society with no discrimination and biased can be achieved through this simple thought, the dream which seems to be coming true and becoming practical.The simple vision of one man, Muhammad Yunus has taken the shape of the revolution and has shown the ray of hope in the path of life to every human, irrespective of his background or status or position. The hope of a life that no one will sleep hungry, no one will die due to lack of medication, our children can read and write on their own and everyone will be the pillar of the society. Scop e for further research The current study did not consider the reasons of motivation to join the microfinance program. Another area that has not been investigated is the difficulties that the borrowers baptistery to repay the loan. These areas deserve to be studied by future researchers in the field. There is also another field, which is neglected in our study that the contribute facing pages of MFIs.Actually, to what extent the MFIs are capable to deliver their service to the poor people. Further research could be conducted in this area and for finding the reasons for the gap between demand and supply in terms of microfinance services. References www. google. com Grameen Bank authorised website (www. grameen-info. org/) ASA official website (www. asabd. org) BRAC official website (www. brac. net) PROSHIKA official web site (www. proshika. o rg/) Rahman, R. I. , 1994, Impact of Credit for the Rural Poor An Evaluation of Palli Karma Sahayak Foundations Credit Program, Report Nr 12 07, BIDS, Dhaka. (found on the internet)The World Bank, 1996, Staff Appraisal Report, Bangladesh Poverty Alleviation Micro-finance Report 1, South Asia Region. (Found on the internet) Khandker, S. R, 1998, Micro-credit Programmes Evaluation - A Critical Review, IDS Bulletin of International Development Studies 29 (4), 11-19. (Found on the internet) Measuring the Impact of Micro? nance pickings Stock of What We Know (December 2005) by Nathanael Goldberg. (Found on the internet) Impact of Microfinance on supporting Standards,Empowerment and Poverty Alleviation of Poor People A Case Study on Microfinance in the Chittagong District of Bangladesh. -by Mohammad Arifujjaman Khan and Mohammed Anisur Rahaman.