Do People Borrow Funds From Microfinance Institutions to Invest Anymore? A Field Study to Assess Microfinance Sustainability in Bangladesh Using Latent Class Analysis Model
Bibliographic Data
| ID | 19480381 |
|---|---|
| Authors | Md Touhidul Islam (0000-0003-3206-0326, Begum Rokeya University, corresponding author), Md Sobhan Ali (Begum Rokeya University) |
| Year | 2026 |
| Volume | 20 |
| Issue | 2 |
| Publication date | 2026-06-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Asian Social Work and Policy Review (JOURNAL) |
| Journal identifiers | ISSN: 1753-1403 • E-ISSN: 1753-1411 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/aswp.70032 |
| OpenAlex | W7162337870 |
| Language | EN |
| References cited | 30 |
Microfinance borrowers oftentimes borrow funds for purposes other than investing. Subsequently, they use that fund for non‐investment purposes. This can dodge the poverty alleviation goal of microfinance. The objective of this study is to examine this idea empirically to determine whether microfinance fails to achieve its purpose of poverty alleviation when borrowers borrow and use funds for purposes other than investment. A total of 2571 loans are analyzed and divided into classes according to borrowing purpose and subsequent fund usage using the LCA model. It is found that funds from 26% of loans are used for investment purposes, while the rest are used for some other purposes. This study argues that if the borrowing objectives are other than investment, microfinance can fail to achieve its purpose of poverty alleviation. The study recommends a better understanding of the ulterior objectives of the borrowers before making any loan, and rigorous monitoring of fund usage afterwards
Microfinance · Poverty · Sustainability · Creative Drama in Education · Innovation and Socioeconomic Development · Microfinance and Financial Inclusion
The Microfinance Promise
Subtypes, Severity, and Structural Stability of Peer Victimization
Does Microfinance Reduce Poverty in Bangladesh? New Evidence from Household Panel Data
To Parcel or Not to Parcel
Microfinance as a Development and Poverty Alleviation Tool in Rural Bangladesh
Women's Empowerment or Disempowerment through Microfinance
The Effects of Microfinance Programs on Recipients’ Livelihoods in Rural Bangladesh
Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh
Revealed objective functions of Microfinance Institutions
Microfinance and the business of poverty reduction
History of microfinance in Bangladesh
Microfinance and Poverty Reduction
| Highly cited | No |
|---|