Microcredit Programs in Bangladesh. Discussion of microcredit program

Microcredit Programs in Bangladesh
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Microcredit Programs in Bangladesh
Discussion of microcredit program
Microcredit creates opportunities for entrepreneurs and low-income families to raise the economic standards and enhancing their social well-being. The introduction of microcredit programs increases the frequency of borrowing and the lending amount borrowed by the local people, especially in Bangladesh and India cases. It improves the economic status of the people by promoting stability spending and income earnings, which has a positive impact to the economic growth of the poor people in the country. The program receives both criticism and praise for its poverty eradication efforts due to the guidance measures it offers to borrowers to engage in profit activities to help in settling the loan debt. The impact of microfinance borrower directs people to have the determination and the ability to improve their economic situation (Yunus, 2005). Nowadays, various analyses can prove the benefits of microcredits loans to different beneficiaries in several countries, such as Bangladesh, Ethiopia, and India.
Microfinance is useful to develop when a worker understands their potential, and they set a plan towards fulfilling them. However, the program has good and bad effects to the global development view with a fair amount of caution, according to many professionals and researchers. They should erase misunderstandings in their borrowers to encourage many people in the promotion of trade to improve the economy. It eliminates misconceptions of microfinance as not a profit-making organization instead of helping people to come out from poverty situations. Besides, it can collaborate with social institutions to offer an avenue for real opportunities for economic growth. The institutions should take as risk-taker other than being a reward mentality. It is a core value of the organizations because many communities’ members may not have the capacity to pay their loans.
Success of microcredit
Microcredits organizations play crucial to poor people in the economy by raising the standards of living. The firms improve skills and income opportunities for the sparse population in society. Credit loans do not only enhance productivity and increasing incomes among people but also leads to skill training as well as strengthening better marketing networks (Yunus, 2011). It has positive feedback towards improving the economy and sustainability income to the lower-class population in Bangladesh. They have several policies that guide borrowers on the types of business they can invest in after taking a loan, which will generate income to settle the debts. Microfinance institutions have low-interest rates than the other moneylenders in Bangladesh, which attracts many borrowers. Moreover, the institutions still have a room even to lower their interest rates further in the future realized from sufficient return funds. Reducing the c...