Latest Research: Micro Financing in Bangladesh

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Bangladesh Rural Advancement Committee (BRAC) is one of the largest micro financing providers and is operating several types of micro financing programmes in Bangladesh. Among these programmes the CFPR (Challenging the Frontiers of Poverty Reduction) programme of BRAC was chosen as the case study in our research and examined to understand the contribution of micro financing through developing small enterprises.

The programme used a different approach of micro financing where asset was transferred rather than cash. The value of the transferred asset was more or less equal.

The study was carried out by purposively selecting 21 beneficiary households and tried to identify the reasons, which made difference among the selected participants’ economic condition and livelihoods. The study revealed that the asset transferring programme resulted in significant improvement in the livelihood of the members in most of the cases.

But there were also some cases where the beneficiaries could not improve their livelihood or the improvement was negligible. It was observed that the households can improve quality of life with micro financing if they demonstrate proper planning, hard work, and personal interest in the business they are starting.

Based on these findings, the study makes some policy recommendations towards improving and ensuring the success of the asset transferring approach.

This study is part of our research paper (co-authors: Ismat Mahmuda, Finance Ministry, Bangladesh and Dr. Angathevar Baskaran, Middlesex University, London) published by the Institute for Economic Research on Innovation (IERI), South Africa. Keywords: Social innovation, microfinance, Poverty reduction, Bangladesh Rural Advancement Committee, Ultra poor, Bangladesh.

Your comments invited on: Will micro-financing through asset instead of cash aid in reducing unemployment and poverty in your country further?

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  • Ajay Vyas

    “Dear Jatin
    Good paper. Any venture – regardless of its size DOES require proper planning, hard work, and personal interest.
    Was any research done to meet the aspirations of participants who did not see their expected improvement in their economic life?”

  • Vijay Mitra

    “Hi Jatin
    Interesting article. Keen to know how the asset transfer without significant increase in value changes the lifestyle of small business startups in rural. This could be a game changer as cash exchange is a always a challenge. Mircro-financing is also used in rural India to a greater extent. You may choose to check out the best practices and see if they can be replicated across countries.

  • Dr.E.Bhaskaran. B.E, M.B.A, PH.D

    “Very use ful paper for current needs.



    I Seen That there is fact and will they improve…really good explanation…”

  • Manish Mota

    “hello sir,

    good job sir very nice to read

    thanks “

  • Dr. Urvshi Makkar

    It’s, undoubtedly, highly enriching research. Any plans, Dr. Jatin, to do similar research for Indian Micro-Financing System, including to find its effectiveness?

  • Hemal

    “Hello Dr.
    Quite Interesting reading….haven’t heard about transfer of Asset instead of Cash in microfinance. Keen to know ,the kind of Benifcieries selected for Microfinance, their annual household income levels, projects and most importantly their the kind of Assets that were transfered… Also would like to know if any research was done on the benificieries whose life didn’t see significant improvement. “

  • Sunil Khiani

    “Dear Jatin Sir,

    Indeed a good paper.
    But this surely is an obvious finding, though this program did not give cash but Assets were transferred but still it would require planning, organizing, hard work..

    Also it would be interesting to see what quality and type of assets were transfered since skill sets of people getting those assets are also to be examined.


  • Veena Christy

    “Interesting study. I understand that the study has increased the livelihood of beneficiaries…but
    1. Is this “”increase”” greater than if cash is transfered?
    2. Does Personal interest of benefiicary & asset alone determine the benefit? “

  • Asim William George

    “Dear Sir Jatin,
    Thank you for sharing the interesting research, I m trying to find full articl its ineresting as helps developing countries to use there resources maximum and tranfering knowlege and human skill can also be one more aspect of micro financing, “

  • Tushar Mistry

    Nice 1. Its a nice research for NBFC to develope their business in bangladesh.

  • Prof. Suhas Rane

    “Dear Dr Jatin –

    Good & interesting.
    I’m fwdg this to one Mr Dheeraj Rathi – who is actively working in this area – M/fin in Bangla Desh “

  • Dr. Aditya Srinivas

    Really good paper, i feel that Micro finance is the only way to achieve Financial Inclusion for overall grwoth of the economy


    congrats for paper,evelution and replan is necessary for sucess the project.
    from : vijay”

  • “Dear Jatin,
    As per my openion first of all proper guidence is required for increasing their intrest lavel.”

  • “very good paper. Thanks for sharing your knowledge with us like to read full paper.

  • Ashvin Patel

    i am in microfinance, i heared first time where assets are transfered instead of cash, however i think giving cash is better option rather than assets, it gives them freedom to use the cash where exactly they wants to use. moreover what we do is we give cash as well as some vocation trainings also.

  • “As always Jatin, an excellent research study into an area of finance which is gaining much interest across the globe.

    Do continue the great work, you are raising a lot of awareness for an very noble project!:):)”

  • Aashiya Desai

    “Dear Jatin Sir,

    Thank You for sharing your knowledge in Micro Finance.

    According to me proper knowledge of utilizing the assests is very much necessary, mere transfering assests wuld probably not help at a length. Educating people on how to utilize and sustain with assests is essential for improvement in their economic life.”

  • Bhawana

    “Dear Sir,

    Every penny counts, Every single detail matters in rearranging and improvement process.

    Thanks for sharing and would like to read full paper.



    “Dear Sir
    Its nice and very good resarch paper. yes as per my view micro finance may be reuduce unemploymant and poverty”

  • Samir

    “Very interesting perspective .. i wonder its application to similar countries and how things can change!

    Good research sir ! thanks for sharing it!”

  • “Jatin,
    In excerpt, pl specify the examples of assets given to poor households. Also, pl specify the quantified change that came about and how many households it failed in? Also, i believe the sample is too small. you need to test it in 1,000 households at least. Also, across geographies within a country and across countries. It will be good to know how asset transfer was better than cash transfer. How was the impact different?

  • Dr.Lav

    “Dear Sir,

    I have gone through the paper and it is new perspective for the developing countries. I will like to add that during the vedic times in India as our history says assessts exchange was mode of finance and it did well. Until when the financial disequilibrium was set between the economical strata (e.g. farmers and jamindars), where jamindars started taking the farm in exchage of food, and other daily necessities.
    So it will be beneficial when two equal economical strata deals in the exchange. “

  • Pranab c roy

    “Very interesting topic…
    ”…asset instead of cash…”? BRAC must have finalised their decision on “Asset”, based on their analysis on previous records. I wish and hope your study will help them a thorough understanding about their policies and plans to achieve success of this development projects .
    This study will definitely give us a good learning…”

  • Kailash Dave

    “Dear JP

    Thanks for sharing your knowledge”

  • just got to explore some non thought areas of managment in daily life we really should make all individual capable enough to get the best out of them to always create a team to help them manage any thought in future

  • Sanjiv Inamdar

    “I am all for helping the needy by way of asset transfer as opposed to providing cash. This way, the poor recipients are safeguarded against exploitation in the open market. And they get the required assets without hassles. Finally, it dramatically reduces the scope of potential misuse of the funds.

    Eventually, it is proper planning, hard work, and personal interest in the business that makes all the difference. I am glad that the research has highlighted the importance of these qualities on part of the beneficiaries.

  • hitesh Prajapati

    “Dear Sir,

    Thanks to remember me,

    I haven’t read the research paper prepared by you as i have the examination time here

    buti will give yoiu the comment as soon as i read

    thanks agai

    keep in touch

    HITESH 09909950960
    Lecturer, HNSB college of mgnt. studies
    motipura, Himmatnagar”

  • hitesh Prajapati

    “yes sir,

    in my opinion, the micro financing through assets instead of cash reduce the unemployment and poverty in country.

    as i thought, it may create the opportunities as well as funds for the seekers that they can get work and reward.