Rural development and microcredit: a comparative study of conventional microcredit and islamic shariah based microcredit

Abstract

The study entitled, “RURAL DEVELOPMENT AND MICROCREDIT: A COMPARATIVE STUDY OF CONVENTIONAL MICROCREDIT AND ISLAMIC SHARIAH BASED MICROCREDIT” was conducted on three villages namely Sukhati of Newashi Union, Boromani of Bamondanga Union and Shapkhoa of Raigonj Union of Nageswari Upazila, Kurigram. Data were collected through structured questionnaires and Focus Group Discussion (FGD) to identify the qualitative as well as quantitative changes of rural development indicators such as economic, human resource and living environment related parameters of the microcredit beneficiaries as well as non-beneficiaries. The major concern of this study includes the analytical description of impact analysis of conventional and shariah based microcredit on rural development indicators. Thus this study furnishes a wealth of information of the beneficiaries and non-beneficiaries about land and livestock ownership, ownership of other assets, income and savings, housing, education, occupation, family planning, source of drinking water and sanitary latrine. In fact, this comparative study explores the impact of conventional as well as Islamic shariah based microcredit on the rural development indicators of the selected three villages of Nageswari Upazila in Kurigram District. This study reveals that both conventional and Islamic shariah based microcredit have positive impacts on the rural development indicators. This programme has increased the land ownership, income and savings, housing quality, awareness regarding education and family planning, safe drinking water and uses of sanitary latrine. In fact, there has been an exaggeration of impact of conventional microcredit programme on rural development in Bangladesh.