The rapid development of micro-finance in Bangladesh, India & Africa

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The topic of Micro-Finance has gained lot of importance in the past few years. It has large implications in the developing countries. The focus of this research was on the Rapid Development of Microfinance in Bangladesh, India & Africa. There is no doubt that the concept of Microfinance has gained huge popularity in these countries. The role of Bangladesh in this case was the highest among the three countries because of the establishment of Grameen Bank. In this research, every aspect of this issue has been covered and it has been seen that the rapid development of Microfinance in these countries has significantly changed the overall scenario for small businesses and investors. It has even helped the individual poor people who were not able to borrow money from large banks due to lack of funds. Therefore, the rapid development of microfinance has been proved quite beneficial for India, Bangladesh and Africa which will be witnessed in the following research.

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION1

1.1Aims & Objectives1

1.2Focus of Literature3

1.4Study Purpose6

1.5Implications and significance of Policy making and Practice8

CHAPTER 2: LITERATURE REVIEW10

2.1Microfinance10

2.2Stages of Development of Micro-finance in various LDCs10

2.2.1The Initial Period12

2.2.2The Second Period13

2.2.3The Third Period14

2.2.4Critical Triangle16

2.2.5The Triangle of Zeller16

2.3Growth and evolution of microfinance in Bangladesh17

2.3.1Microfinance in 1970s in Bangladesh18

2.3.2Microfinance in 1980s in Bangladesh19

2.3.3Factors Responsible for Scaling-Up20

2.3.4Classification of Process of Scaling Up23

2.3.5Extent of the Mission flow24

2.4The Context of Microfinance in India25

2.4.1Approach of 'Financial System' and Impact28

2.4.2The Future of Microfinance in India34

2.5Growth of Microfinance in Africa36

2.5.1Inadequate Government Regulations38

2.5.2Large populations in Rural Areas and lack of infrastructure38

2.5.3Scarce Utilisation of Technology38

2.5.4Shortage of Strong Managerial Personnel39

2.5.5Shortage of Early Stage funding39

2.5.6Performance of Microfinance in Africa41

CHAPTER 3: METHODOLOGY44

3.1Research Methodology44

3.1.1Quantitative method:44

3.1.2Qualitative method45

3.2Main purpose of this studies47

CHAPTER 4: DISCUSSION AND ANALYSIS48

4.1Questions for interview48

CHAPTER 5: CONCLUSION56

5.1Recommendations58

5.2Scope of Future Research60

REFERENCES62

ABBREVIATION69

APPENDIX70

CHAPTER 1: INTRODUCTION

Aims & Objectives

The main aim is the investigation of the situation of Microfinance in Bangladesh, India, and Africa. The major role will be to analyze the new development in microfinance. If there is any drift from the goals so how it can be controlled that all will be scrutinized. Many program are been framed by the different MFIs to reduce the level of poverty and it is really making a huge impact to help poor people to get stable. It is crucial to get a loan from local banks or nationalized banks so, there are some moneylenders around the remote areas they charge very high rate of interest and lend their money to poor people. So, there are some MFIs who have been built to provide professional microfinance services in these areas but it has not been fulfilled ...