Role of microcredit on street vendors: Study on selected districts of Bangladesh
Md Abdullah Al Mamun, Md Abdullah Al Mamun, Md Anisur Rahman
Micro credit institutions (MCI) emerged with a view to assisting unprivileged group of people. By financial inclusion MCI provides many financial services to the poor people. Street vendors are a part of financially unprivileged group of society. Their income is low and most of them are illiterate. This report shows the impact of MCI on street vendors selected district of Bangladesh. The main objectives of the research is to know whether micro credit helps people to be entrepreneur as street vendors and the positive and negative aspects of micro credit on street vendors. The study was confined in five districts namely Khulna, Jashore, Bagerhat, Pabna and Rajshahi. A questionnaire with structured, unstructured, semi-structured questions was used to collect necessary data from 200 respondents by face to face interview during October, 2019. This report revealed only 21% of people start their business with the help of MCI’s fund. Majority percent people start their business with their own fund. This research also shows that the borrowed fund is used for multipurpose sector like – agriculture, rearing cattle, purchasing household utensils, build house etc. 100% respondents think that interest of MCI is very high at the same time they have to pay compensation at delay payment of installment. Average interest rate of MCI is 26.92%. High cost debt creates debt trap. For excessive burden of interest, some respondents become multiple borrowers and finally they have to make capital loss to repay the loan.
Md Abdullah Al Mamun, Md Abdullah Al Mamun, Md Anisur Rahman. Role of microcredit on street vendors: Study on selected districts of Bangladesh. International Journal of Multidisciplinary Research and Development, Volume 7, Issue 8, 2020, Pages 48-51