Keywords: Microfinance, Household Income, Credit, Logit Model, Policy Implication.


This present study aims at analyzing how microfinance affects household income of its participants as well as to find out the factors that influence the participants to adopt loan for which a logit model was applied. This study was run on three villages of Daulatpur Upazila of Kushtia district namely Khalishakundi, Malipara and Silimpur from which 350 respondents were chosen randomly. The result reveals that Age (p<0.05), household size (p<0.01) and credit amount (p<0.05) from microfinance had significant negative impact on average household income and spouse’s income had a positive sign with coefficient of 0.867 which was significant (p<0.01). Logit model expresses that average income, age of respondent and household size all had negative sign implying that an increase of one of them will discourage the respondents tending towards borrowing loans from microfinance which were also significant (p<0.01). This study also found several problems faced by the participants of microfinance such as high interest rate, delay of credit, rude behavior of representatives, short recovery time, influence of old members etc. as well as recommend the policy implication regarding them.

JEL Classification Codes: G21, Q52, O18, D13

Author Biographies

Bilkish Banu, HMDSTU

Assistant Professor, Department of Economics, Hajee Mohammad Danesh Science & Technology University, Dinajpur-5200, Bangladesh

Mohammad Mukul Hossain, RU

MBA Student, Department of Management Studies, University of Rajshahi, Bangladesh


Mohammad Samiul Haque, HMDSTU

MBA Student, Department of Finance and Banking, Hajee Mohammad Danesh Science & Technology University, Dinajpur-5200, Bangladesh


Babor Ahmad, HMDSTU

MSS Student, Department of Economics, Hajee Mohammad Danesh Science & Technology University, Dinajpur-5200, Bangladesh


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How to Cite
Banu, B., Hossain, M. M., Haque, M. S., & Ahmad, B. (2021). EFFECT OF MICROFINANCE ADOPTION ON RURAL HOUSEHOLD INCOME IN SELECTED UPAZILA OF KUSHTIA DISTRICT OF BANGLADESH. Bangladesh Journal of Multidisciplinary Scientific Research, 3(1), 24-32. https://doi.org/10.46281/bjmsr.v3i1.954
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper